Codul-Rutier Actualizat

Delphi
Manufacturing
System
Material Movement
Element Introduction
Ideal Material Movement in a Plant
How To’s
Appendices
Version 3.1
Publication Date: 01 December 2001

apollo.delphiauto.net/mfg.systems/
© 2001, Delphi Corporation.
Copyright under International, Pan American, and Universal Copyright Conventions.
Printed in the United States of America. All rights reserved.
Date: December 1, 2001
To: All Delphi Employees
From: Manufacturing Task Team (MTT)
Subject: Delphi Manufacturing System - Version 3.0
This manual reflects the latest revisions to the Delphi Manufacturing System (DMS) manuals that were
originally published in October of 1996. The ongoing intent of the manual revisions is to enhance a
common lean process throughout Delphi. This revision incorporates the learnings of those participating in
continuous improvement activities under the guidance of lean Senseis as well as those charged with
implementing DMS. To ensure uniform application at all component manufacturing facilities, this
document will be superseded and republished on a regular basis.
This revision emphasizes the fundamentals of observation and standardization. The need to observe
existing processes to clearly determine opportunities for improvement has become increasingly apparent.
The success of these observations is contingent on the repeatability and standardization of the observed
processes.
This revision also includes the integration of the Manufacturing System Design process and the DMS
Flow Manufacturing process into a DMS Interdependent Element titled Flow Manufacturing System
Design. This enhanced process incorporates the best of both processes into a common process that
supports a focus on the operator and the effective use of capital.
Additionally, this revision includes extensive revisions to the Operational Availability How To’s. These
revisions support the Quality Network Planned Maintenance process in represented plants. Furthermore,
the revisions provide a comprehensive, stand-alone process for use in non-represented plants.
Many of the Interdependent Element How To’s are enhanced to provide additional detail and incorporate
recent Delphi learnings. It is intended that these enhanced How To’s will accelerate the implementation
process through the application of a preferred common process.
The MTT endorses the revisions to these manuals and wish to thank those implementing Lean initiatives
throughout Delphi who shared their learnings in the revision. Your efforts to continue the implementation
of a common manufacturing process across Delphi are critical to our continued success.
Don Runkle - Champion D. Scott Mitchell

Delphi Corporation Delphi Saginaw Steering Systems
John Holden Ed Northern

Delphi Safety & Interior Systems Delphi Energy & Engine/Chassis Systems
Robert Morgan Mark Sabau

Delphi Harrison Thermal Systems Delphi Packard Electric Systems
Brian P. O’Neill Dave Logozzo

Delphi Delco Electronics Systems Delphi Corporation
Delphi Confidential. Publication Date: 01/DE/01. i

Uncontrolled Copy - For Reference Only.
Summary of Revisions to Material Movement
The manual is divided into three primary sections: Introduction, How To's and Appendices. Each How To section
covers the following topics: description, objectives, prerequisites, How To (summary) and How To (detail).
Introduction includes a revised pyramid that is common in format to the other elements that replaces the DMS
Material Flow pyramid formerly in the Ideal Material Movement in the Plant section. The pyramid follows a suggested
flow of How To implementation.
Ideal Material Movement in a Plant has been revised to follow the sequence of the shipping dock through finished
goods, assembly, component areas, supermarket/bulk storage areas to the receiving dock.
MM-1 Plan for Every Part (PFEP) (formerly MM-2) exchanges places with Ship to Schedule Build to Plan (formerly
MM-1). The PFEP Database Fields have been revised and now includes brief definitions. The Sample Report has
been removed from this section.
MM-2 Ship to Schedule Build to Plan (formerly MM-1) is changed from “Shipping to Schedule” and “Building to
Plan.” In the MM-2-1 Scheduled Window Shipping section the Scheduled Window Shipping Board and
Countermeasures Worksheet have been absorbed into the How To (Detail) versus remaining attachments to the
section. In the MM-2-2 Production Leveling section a description and figure have been included describing the
Normal Distribution. The figures and descriptions of traditional versus level scheduling have been expanded. The
How To (Detail) has been rewritten for building the level schedule. The figures have been revised following a
common example throughout the section. A worksheet has been included to assist in determining changeover
frequency. Another worksheet has been included to assist in determining cycle stock (running stock) by part number.
A figure and descriptions for developing a buffer for each part number has been included. The macro-leveling
example has been removed. A description and basic operating rules for a heijunka schedule are now included
MM-3 Designated Storage has absorbed many points in the Issues/Advice section into the appropriate steps in the
How To (Detail) sections of the MM-3-1 Supermarket/Bulk Storage and MM-3-2 Empty Container Storage.
MM-4 Container Right Sizing & Supporting the Operator has a redesigned Decision Process for Container Right
Sizing Flow Chart and key. Many points in the Issues/Advice section has been absorbed into the appropriate steps in
the How To (Detail) sections. The Sample Returnable Container Manifest has been removed from the attachments.
The Common Lot Strategy Example for a Cell has been included into the attachments including a diagram,
explanation and benefits. The Sequencing section has been removed, thus moving the section on Kitting up to
MM-4-3. The Kitting Pictorial has been improved to enhance the display of the kitting concept. The Guidelines for
Delivery Frequency and Method Based on Part Characteristics has been moved from the Attachments to the How To
(Detail) section.
MM-5 Internal Pull Systems has enhanced the descriptions and objectives of withdrawal and production pull
systems. The types of withdrawal and production pull systems have been redefined including the descriptions of each
different type, a visual step-by-step instruction, advantages and disadvantages of each option and in which
circumstances each is best used. The How To (Detail) now includes a flow chart for selecting which type of either
production or withdrawal pull system. MM-5-1 Production Pull introduces a process for determining the size of the
buffer or number of pull signals to be included in the loop. This process includes changeover frequency for each part
number, determining manufacturing and demand variation stock and cycle stock. Both sections now include more
detailed guidance for implementation and revised pull system maintenance procedures. The five attachments in the
previous manual revision have been either removed or revised and absorbed into either the overview, descriptions, or
How To (Detail) sections.
MM-6 Internal Delivery Routes has been revised slightly in many areas. New to this section is How To 6.21. This
How To step refers to developing an internal delivery changeover plan, categorization of common or unique
components of and the delivery technique appropriate to this categorization. Some of the advice and attachments to
this section have been absorbed into the How To (Detail).
MM-7 Supplier Delivery has undergone some revisions. Some of the items in the Issues/Advice sections have been
included in the appropriate How To (Detail). The MM-7-3 Supplier Pull figure has been replaced with a more revealing
depiction. Many of the objectives have been revised to this section. The discussion on pull system rules and
guidelines has been added (How To MM-7-3-7-6).
MM-8 is now Other Material Plans and has gone through format revisions.
Additional Copies
To obtain addition copies of the Delphi Manufacturing System books, contact your divisional change agent or
download a copy from the Delphi Manufacturing System Web Site, Manuals Page
(http://apollo.delphiauto.net/mfg_systems/manuals.htm).
Suggestions for Improvement
Suggestions for improvements to the manuals can be routed to the Delphi Manufacturing Support Team through your
divisional change agent. You can also make suggestions via the Delphi Manufacturing System Web Site, Feedback
Page (http://apollo.delphiauto.net/mfg_systems/feedback.htm).
ii Delphi Confidential. Publication Date: 01/DE/01.

Table of Contents
Material Movement
TABLE OF CONTENTS
MATERIAL MOVEMENT
Introduction - Material Movement...................................................................................................3
Ideal Material Movement in a Plant...............................................................................................15
How To’s
MM-1 Plan for Every Part..........................................................................................................25
MM-2 Ship to Schedule Build to Plan .......................................................................................33
MM-2.1 Scheduled Window Shipping........................................................................35
MM-2.2 Production Leveling......................................................................................45
MM-3 Designated Storage .........................................................................................................57
MM-3.1 Supermarket/Bulk Storage ............................................................................59
MM-3.2 Empty Container Storage..............................................................................67
MM-4 Container Right Sizing & Supporting the Operator........................................................75
MM-4.1 Containerization............................................................................................77
MM-4.2 Repacking .....................................................................................................89
MM-4.3 Kitting ...........................................................................................................93
MM-5 Internal Pull Systems ......................................................................................................99
MM-5.1 Production Pull Systems .............................................................................105
MM-5-2 Withdrawal Pull Systems............................................................................123
MM-6 Internal Delivery Routes ...............................................................................................133
MM-7 Supplier Delivery ..........................................................................................................155
MM-7.1 Scheduled Window Receiving....................................................................159
MM-7.2 Container Return Process............................................................................169
MM-7.3 Supplier Pull................................................................................................179
MM-7.4 Lean Logistics.............................................................................................189
MM-8 Other Material Plans .....................................................................................................197
MM-8.1 Hazardous Material Plan.............................................................................199
MM-8.2 Indirect Material Plan .................................................................................203
Appendices
Appendices Index.........................................................................................................................209
Appendix A: General Considerations for Supermarkets, Pull Systems and Delivery Routes...211
Appendix B: Material Handling Design Criteria.......................................................................215
Delphi Confidential. Publication Date: 01/DE/01.

iii
Table of Contents
Material Movement
Figures
Figure MM-I-A: DMS Interdependent Elements Figure MM-5-H: Production Pull-Card Pull
Figure MM-I-B: Material Movement Depiction Figure MM-5-I: Sequencing Board
Figure MM-I-C: Flow Within Process Figure MM-5-J: Lot Forming Board
Figure MM-I-D: Flow Between Processes Figure MM-5-K: Production Pull-Container Exchange
Figure MM-I-E: Material Movement Pyramid Figure MM-5-L: Selecting a Production Pull System
Figure MM-1-A: PFEP Database Fields Figure MM-5-M: Cycle Stock (Running Stock)
Figure MM-2-A: Issues/Advice - Scheduled Window Calculation Table
Shipping Figure MM-5-N: Data Table Template
Figure MM-2-B: Scheduled Window Shipping Board Figure MM-5-O: Internal Pull Systems-Withdrawal Pull
Figure MM-2-C: Countermeasure Worksheet Figure MM-5-P: Types of Withdrawal Pull Systems
Figure MM-2-D: Workload-With/Without Leveling Figure MM-5-Q: Withdrawal Pull-Card Pull
Figure MM-2-E: Normal Distribution Figure MM-5-R: Withdrawal Pull-Container Exchange
Figure MM-2-F: Variation in Traditional vs. Level Figure MM-5-S: Selecting a Withdrawal Pull System
Scheduling Figure MM-5-T: Replenishment Factor
Figure MM-2-G: Ship Windows Figure MM-6-A: Internal Delivery Route
Figure MM-2-H: Traditional (Batch) Scheduling Figure MM-6-B: Issues/Advice - Internal Delivery Routes
Figure MM-2-I: Level Scheduling Figure MM-6-C: Sample Route Driver Work Content
Figure MM-2-J: Changeover Frequency Worksheet Analysis
Figure MM-2-K: Cycle Stock Worksheet Figure MM-6-D: Changeover - Common vs. Unique Parts
Figure MM-2-L: Design of a Buffer Figure MM-6-E: Changeover - Delivery Techniques
Figure MM-2-M:Micro Leveling Example Figure MM-6-F: Sample Operator Balance Chart for
Figure MM-3-A: Supermarket/Bulk Storage Layout Route Drivers
Pictorial Representation Figure MM-6-G: Sample Standardized Work for Tugger
Figure MM-3-B: Guidelines for Hand Carribles and Bulk Route Driver
Storage Area Figure MM-6-H: Sample Tugger Route Diagram
Figure MM-3-C: Issues/Advice - Empty Container Figure MM-6-I: Sample Tugger Route Summary Visual
Storage Control
Figure MM-3-D: Returnable Container Process Figure MM-6-J: Decoupled vs. Coupled Delivery Routes
Figure MM-4-A: Containerization Transition Figure MM-6-K: Decoupled Delivery Routes
Figure MM-4-B: Issues/Advice - Containerization Figure MM-6-L: Double Decoupled Delivery Routes
Figure MM-4-C: Returnable Container Process Figure MM-6-M: Coupled Delivery Routes
Figure MM-4-D: Decision Process for Container Right Figure MM-7-A: Issues/Advice – Supplier Delivery
Sizing and Material Movement Figure MM-7-B: Scheduled Window Receiving Board
Standards for Packaging Figure MM-7-C: Countermeasure Worksheet
Figure MM-4-E: Common Lot Strategy Example for a Figure MM-7-D: Issues/Advice - Container Return
Cell Process
Figure MM-4-G: Repacking Figure MM-7-E: Returnable Container Process
Figure MM-4-H: Issues/Advice - Repacking Figure MM-7-F: 5 Alarm Process for Empty Containers
Figure MM-4-I: Kitting Pictorial Figure MM-7-G: Sample Returnable Container Manifest
Figure MM-4-J: Issues/Advice - Kitting Figure MM-7-H: Supplier Pull
Figure MM-4-K: Guidelines for Delivery Frequency and Figure MM-7-I: Issues/Advice – Supplier Pull
Method Based on Part Characteristics Figure MM-7-J: Lean Logistics
Figure MM-5-A: Internal Pull Systems Figure MM-7-K: Closed Loop Transportation System
Figure MM-5-B: Variation vs. Probability of Success Figure MM-7-L: Issues/Advice - Lean Logistics
Figure MM-5-C: Types of Internal Pull Systems Figure MM-7-M: Lean Logistics
Figure MM-5-D: Pull Card Figure MM-8-A: Issues/Advice - Hazardous Material
Figure MM-5-E: Temporary Pull Card Plan
Figure MM-5-F: Internal Pull Systems-Production Pull Figure MM-8-B: Issues/Advice – Indirect Material Plan
Figure MM-5-G: Types of Production Pull Systems
iv Delphi Confidential. Publication Date: 01/DE/01.

Uncontrolled Copy - For Reference Only
Delphi
Manufacturing
System
Material Movement
How To’s
Appendices
Introduction
Material Movement
MATERIAL MOVEMENT INTRODUCTION

Material Movement is a process that effectively moves material through the manufacturing
operations to support the flow strategy, resulting in the delivery of the required quantity of
product to the customer on time.
The Material Movement techniques introduced in this manual support the transformation of an
organization from a mass-manufacturing environment to the demand-based principles of flow
manufacturing. The ideal plant continuously reviews processes for the purpose of improving
quality, response time and reducing cost through eliminating the seven forms of waste. The
techniques introduced below and described in more detail in the How-To’s support the flow
strategy outlined in Flow Manufacturing System Design.
The goal of Material Movement is solely to support the flow of product through the value
stream. There are several techniques described, but each technique is designed to meet that goal.
The Future State Value Stream Map, described in the Implementation Guide, is the blueprint for
defining the type of Material Movement strategies to be applied in the value stream. As depicted
in Figure MM-I-B: Material Movement Depiction, the Future State Value Stream Map is used
as input into the Material Movement process that is designed to create the ideal plant.
To understand the planning and implementation of Material Movement, as it pertains to other

DMS Interdependent Elements, refer to Figure MM-I-A: DMS Interdependent Elements.
Employee Environment Workplace Organization (WO)
and Involvement (EE)
Empowered Teams
OP
OP OP
A place for everything and
A TL OP
everything in its place.
Quality (Q) Define

Operational Availability (OA)
Define
I&CIM Cleaning Visual
Organizational Accountability
Measure
Why? Inspection Controls
Measure
Why? Analyze
Analyze and Proper for Quick
Why?
Why? Improve
Improve
Lubrication
improves Availability
Response Pull System
Why? Control
Control
Material Movement (MM) Flow Manufacturing

Pull System
System Design (MSD)
Kaizen-Layout
Kaizen-Equipment
Kaizen-Flow & Process
Make what we need, when we need it. Standardization
Implementation Guide (IG) Observation
Plan
Implement
Start Here
Make what we need, when we need it.
Figure MM-I-A: DMS Interdependent Elements

3
Introduction
Material Movement
Future State Material Movement Pyramid

Value Stream Map LeanEnterprise
LeanEnterprise
Mfg. PC-L Engineering PurchasingPurchasing
Mfg. PC -L Engineering Sales Sales
Rolling 6-wk Forecast

7 7 BUSINESS PROCESSES
Customer order
ALL LINKED
BUSINESS PROCESSES
today order
Customer - shiptoday
ALL LINKED
today - shiptoday
6-wk forecast
Agile/LEAN/Fast to Marketto Market

Agile/LEAN/Fast
Weekly Order
Steel
PC & L Customer
6 6
Supplier
Level Box
Daily
DA1 Build to OrderBuild to Order Modularity Modularity
DA2
DA3
6 x / Day
MM-7 Delivery
MM-7 Supplier Supplier Delivery Lean Logistics
Lean Logistics
5 5 ScheduledReceiving
Scheduled Window
Window Container Container
Supplier Supplier
(Dock Boards) Return Process Pull
Frequent
Frequent Milk Milk Scheduled
Scheduled Pickup Summary
Pickup Summary
Stamping Welding Assembly Finished Goods
Receiving (Dock Boards) Return Process Pull Delivery Runs Runs Sheets
Delivery Pickup Pickup Billing
Sheets Billing
Layout MM-5
MM-5 Internal Internal
Pull Pull Systems
Systems MM -6Delivery
MM-6 Internal Internal Delivery
SystemsSystems
4 4 Buffer Standardized People Focused Changeover
Production Production
Withdrawal Withdrawal
Buffer Standardized People Focused Changeover
RoutesPractices PracticesProcess Process
Pull PullPull ManagementManagement Routes
Pull
MM-3 Designated
MM-3 Designated Storage Storage MM -4 Container
MM-4 Container Right Sizing
Right Sizing
and Supporting
and Supporting the Operator
the Operator
3 3
Supermarket
Supermarket
Visual
Visual
Addressing
Addressing Empty Container
Empty Container Standard Standard Small
Small
Common
Common
/Bulk Storage Storage Lot Lot
/Bulk Storage ManagementManagement Storage Containerization
Containerization Lot Lot
MM-1 Plan for Every Part MM -2 Ship to Schedule and Build to Plan
MM-1 Plan for Every Part MM-2 Ship to Schedule and Build to Plan
2 2 Maintenance
Maintenance
Planning
Planning Production
Production Leveling Small
Small
Lot
Buffer Scheduled Window
Buffer ManagementScheduled Window
Shipping (Dock Boards)
Leveling Lot Management Shipping (Dock Boards)
The Foundation
The Foundation
1 Leadership Knowledge
Leadership Knowledge Planning Planning Action Action
1 Commitment Support Education/Training Communication Expectations Aligned Metrics
Aligned Metrics Follow-up
Follow-up
Commitment Support Education/Training Communication Expectations
Manufacturing System
Flow
Employee Environment Workplace DelphiDelphi Manufacturing System
Manufacturing
Manufacturing System
Design Employee Environment WorkplaceOrganization Operational Availability
& Involvement Quality Material Movement
Design & Involvement Organization Quality Operational Availability Material Movement
Supplier
Receiving
Dock
SHEDULED WINDO WS HI PPIN G
Do cks
Lean Logistics
D at e
:
Tm
i e 1 2 3 et c.
a r ier 1r
C
6:0 0 AM (C u
s to mer erA )
r eri r 4
a
C
6:3 0 AM (C u
sto sto
m re F )
T
a rie ier 2
C
7:0 0 AM ( u
C s tom erm C ) P
Rec eived
T
a r ier 1r
C
7:3 0 AM (C u
s to mer erB ) S
S
a r ier 3r 3
C rC eir r 3
a
8:0 0 AM ( u
C s to m rD
(C u
e )
s to m re )D (C u
a rie r 3
C
sto m er D )
a r ier 4r
C
Mater ial
8:3 0 AM ( u sto m
C er erF )
9:0 0 AM a r ier 2r 2
C
“A”
( u
C s to m erD )D
a r ier 1r
C
9:3 0 AM a r ier r 1
C
( u
C s to m erH )H
0 :0 0A M
1
Superm arket
a rie ier 2
C
( u
C s tom erm D )
In-Process
0 :3 0A M
1 a C
C
(u
Cs u
r ier r 1
a
tso m er G )
a r ier 3r
C
(C u sto m erJ )J
1 :0 0A M
1 :3 0A M
Supermarke t
et c.
=MetWi ndow
A1
P = Pro duct ionIs s ue (Short age)
KE Y: T =T ar n
s pot at io
n Iss ue (Late / Miss)
S =S hipi ngI s ue ( Del ay)
Dept . ABC
MT’s P/N - 12 3 4 P/ N -5 6 78
vin g
5 4 3 2 1
MM EXPRESS
Dock
A2
Rece i
5 4 3 2 1
9
A3 B
8
5 4 3 2 1
“B”
Shipping In-Process
7
Dock Finis hed Supermarket

Goods
6
S HEDULE DWINDO WS HI PPIN G

D ate:
Tm
ie 1
aC rie ier 1
2
Do cks
3 et c. Superm arket
6:0 0 AM (C us tom erm A )
a C
C r ier r 4
a
6:3 0 AM u su
(C to m er F )
T
ar rie r 2
C
7:0 0 AM ( u
C sto tom er C ) P
T
a rie ier 1
C
7:3 0 AM (C u
s tom m er B ) S
a r ier 3r
C a C
C r ier r 3
a
8:0 0 AM (C u
s to mer erD ) s( to m er D )
u
C
(C u
sto m er D )
a rie ier 4
C
8:3 0 AM ( u sto m
C er F )
9:0 0 AM a r ier 2r
C
( u
C s to m erD )
a r ier 1r
C
9:3 0 AM (C u
( u
C
s to erm H )
s to m rHe )
ar ier r 2
C
10 :0 0A M a rie r 2
C
( u
C sto tom er D )
10 :3 0A M a r ier r 1
C
(C u
s to m er G
(C ) )
a r ier 3r
C
(C u sto m rJe )
11 :0 0A M
11 :3 0A M
et c.
=Met Wi nd ow 7 8 9
P = Product ion Is sue (Short age)
KE Y:
MT’s
T =T ar n
s pot ation I s ue (L ate / Mis s)
S =S hippi ngIs sue ( Del ay)
MM EXPRESS
6
C1
PFEP
ing
5 4 3 2 1
Dock
7 8 9
Shi pp
6
C2
5 4 3 2 1
Internal
Delivery Route
Figure MM-I-B: Material Movement Depiction
4 Delphi Confidential. Publication Date: 01/DE/01.

Introduction
Material Movement
Flow Manufacturing System Design describes two general types of flow: transfer lots and
container lots.
Transfer lots are represented as the flow within the individual manufacturing process boxes on
the Value Stream Map as depicted in Figure MM-I-C: Flow Within Processes.
Rolling 12-w
k Forecast
6-wk forecast
Weekly Order
Steel PC & L Customer
Supplier
Level Box
DA1
Daily
DA2
DA3
6 x / Day
Layout
Figure MM-I-C: Flow Within Processes
Container lots are represented as the flow between the individual manufacturing process boxes
on the Value Stream Map as depicted in Figure MM-I-D: Flow Between Processes.
Rolling 12-wk Forecast

6-wk forecast
Weekly Order
Steel PC & L Customer
Supplier
Level Box
DA1
Daily
DA2
DA3
6 x / Day
Layout
Figure MM-I-D: Flow Between Processes

5
Introduction
Material Movement
When applying the Delphi Manufacturing System, our direction is to make value stream
segments flow with transfer lots, combining processes in manufacturing cells where operational
availability, quality and process type permit. Flow Manufacturing System Design describes how
to accomplish this.
Those processes that cannot be managed using transfer lots, even if only in the short term, must
be managed using container lots. This is the focus of Material Movement. Material Movement
provides the process and the How To Guidelines of the movement system to support container
lots that supports transfer lot segments in the future state value stream.
To support effective implementation of Material Movement Systems, the importance of

Workplace Organization cannot be emphasized enough. Workplace Organization provides a
vehicle to get both the hourly and salary workforce engaged early in the process as well as
providing an organized environment for sustained implementation of Material Movement to
support flow.
Plan For Every Part

A material planning process that identifies/creates a detailed
material flow plan for every part in the supply chain. The data
required to create, maintain and improve the plan is stored in an
electronic database. The plan begins with the customer and Database of All Part Numbers
Part Number Storage Location
works back through to the supplier with the goal of supporting Purchase or Make
Weight
Storage Method
Visual Min/Max
Standard Pack Quantity Using Location
the operators and eliminating waste in the supply chain. Container Type
Container Dimensions
Delivery Method
Average Rate of Usage
Supplier Name Usage per Assembly
Supplier Location
Ship Frequency etc.

Introduction
Material Movement
Ship to Schedule and Build to Plan

The process of shipping to the customer exactly what is requested by manufacturing to a
repeatable plan that maintains a known range of finished goods inventory. The finished goods
inventory is implemented to buffer the manufacturing operation from the variation in customer
pulls.
SCHEDULED WINDOW SHIPPING
•
Date:
Scheduled Window Shipping
Docks
Time 1 2 3 etc.
6:00 AM Carrier
Carrier 11
(Customer
(Customer
A specific dock schedule

Carrier
Carrier 44
6:30 AM (Customer
(Customer F) F)
TT
Carrier 2
7:00 AM (Customer C)PP
allocating days and times of

T
Carrier
Carrier 11
Current
7:30 AM (Customer B)D
(Customer B) D
Time Carrier
Carrier 33 Carrier
Carrier 33
8:00 AM (Customer
(Customer D)
day for delivery of empty

D) (Customer D)
(8:45 AM)
Carrier
Carrier 44
8:30 AM (Customer F)
finished goods containers and

Carrier
Carrier 22
9:00 AM (Customer
(Customer D)D)
Carrier
Carrier 11
9:30 AM (Customer
(Customer H) H)
pick-up of finished goods. 10:00 AM

10:30 AM
Carrier
Carrier 11
(Customer G)
Carrier 2
(Customer D)
Carrier 3
(Customer
(Customer J)
J)
11:00 AM
11:30 AM
etc.
= Met Window
PP = Production Issue (Shortage)
KEY: T
T = TranspotationIssue (Late/Miss)
D = Dock Issue (Delay)
• Production Leveling
A technique that buffers the Production
Resources
Without
Leveling
Production
Resources
With Leveling
manufacturing process from the Required Required

variation of the customer demand
by scheduling the pacemaker
process (usually final assembly) to
execute a repeatable production Time Time
schedule (Building to Plan).
Designated Storage
Areas utilized to store material (purchased, in-process and finished, both hand carriable and
bulk) or empty returnable containers received from customers and/or staged for shipment to
suppliers.
• Supermarket/Bulk Storage ROW
D 1 2 3
Stocking Aisle
4 5 6 7 8 9
Stocking Aisle
10 11 12 13 14 15 16 17 18
ROW
D
Picking Aisle Traffic Flow Picking Aisle
ROW ROW
A designated area utilized to store material C 1

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 C
Stocking Aisle Stocking Aisle
ROW ROW
B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
B
inventory (purchased, in-process and finished,

ROW ROW
A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 A
Stocking Aisle Stocking Aisle Column
both hand carriable and bulk).

Column T65
T64
• Empty Container Storage Hand carriable Bulk

AC 53
STORE STORE STORE

Part#__________________________ Part#__________________________ Part#__________________________
A designated area to store empty returnable

Description_____________________ Description_____________________ Description_____________________
Std. Pack_______________________ Std. Pack_______________________ Std. Pack_______________________
SUPERMARKET
Min____________ Max____________ Min____________ Max____________ Min____________ Max____________
Row
StoreLoc_______ UseLoc________ StoreLoc_______ UseLoc________ StoreLoc_______ UseLoc________
Supplier________________________ Supplier________________________ Supplier________________________
DeliveryDate- M- T- W-T- F- S DeliveryDate- M- T- W-T- F- S DeliveryDate- M- T- W-T- F- S
Time___________________________ Time___________________________ Time___________________________
C C
2 B
B B
containers received from customers and/or Supermarket address
T64-A1-A-05
Part number
22152297
Name
P90 Drum brake Adjusting screw
Pack
60
Market Attendant
picks carton based
A A
1 2 3
staged for shipment to suppliers. It is the

MIN Supplier MAX
2 XYD Ind. 7 on Pull Card Order
Rack T64 T64

Row
supermarket for empty containers.
Label A1 A2
A 1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18
C C
19 20 21 23 24 25 26 27 28
B2 B 2930 31
A A
1 2 3 4 5

7
Introduction
Material Movement
Container Right Sizing and Supporting the Operator

The process of packaging and grouping parts to best support the operator and meet the needs of
the customer. This process includes the following:
• Containerization
The process of packaging parts in the
smallest lot possible resulting in the Large
Container
presentation of a quality part to eliminate

waste of motion for the manufacturing Large Bulk
Container
Hand Carriable
Container
Containers Integral
to Parts Presentation
operator. Note: The goal is to have the

supplier ship in a container that can be used as part of
the parts presentation device.
• Repacking
The process of transferring parts from one container
into a more appropriate size or type of container to
satisfy the needs of the next using customer. This is
Large Container Small Container
often done as an interim solution to containerization.
• Kitting Line Flow
The process of grouping parts into sets that

are used together in a downstream PALLET KIT PALLET KIT PALLET KIT
operation.
Operation 1 Operation 2
Pull Systems
A method of controlling the flow of resources by replacing only what has been consumed.
• Withdrawal Pull
Authorizes the movement of material from storage to the point-of-use.
• Production Pull
Authorizes the manufacture or assembly of component parts or finished product at the
request of the next point-of-use
Material to Store Product to User
Super- Customer
Supplying
market
Process Process
Production Pull Withdrawal Pull

Introduction
Material Movement
Internal Delivery Systems

A system to replenish/remove empty containers 7 8 9
C1
and material (purchased, in-process and finished
6
5 4 3 2 1
goods, both hand carriable and bulk) based on a 7 8 9
C2
predetermined delivery path and fixed start times
6
5 4 3 2 1
supporting pull delivery to a specific number of Internal

production delivery points-of-use. Delivery Route
Supplier Delivery
The process of managing materials received from suppliers and materials returned to suppliers
(containers and dunnage). SCHEDULED WINDOW RECEIVING
Date: Docks
Time 1 2 3 etc.
6:00 AM
Carr ier 11
Carrier
(Supplier A)
(Supplier A)
•
Carr ier 44
Carrier
6:30 AM
Scheduled Window Receiving

(Supplier F)
(Supplier F)
Carrier
Carr ier 22
T
7:00 AM (Supplier C)
(Supplier C)
S
Car
Carrrie r 11
ier
T
7:30 AM (Supplier B)
(Supplier B)
D
Current Carrier
Carr ier 33 Carr ier 33
Time
Carrier
8:00 AM (Supplie r D)
(Su pplier D) (Supplier D)
(Supplier D)
(8:45 AM)
A specific dock schedule allocating days and

Car
Carrrie r 44
ier
8:30 AM
(Supplier F)
(Supplier F)
Carr ier 22
Carrier
9:00 AM (Supplier D)
(Supplier D)
Carrier
Carrier 11
times of day for delivery of purchased material and

9:30 AM (Supp lierr H)
(Supplie H)
10:00 AM Carrier
Carr ier 22
(Supplier
(Supplier D)
D)
Car rie r 11
Carrier Carr ier 33
Carrier
10:30 AM (Supplier G
(Supplier G)) (Supp lierr J)
(Supplie J)
pick-up of empty returnable containers. 11:00 AM
11:30 AM
etc.
= Met Window
• Container Return Process KEY:

S = Supplier Issue (Shortage)
T = Transpotation Issue (Late/Miss)
The orderly process of collecting, sorting, staging and returning damage-free reusable
containers and dunnage to our suppliers in a timely manner.
• Supplier Pull
A process that uses pull signals based on consumption to
authorize replenishment of material from suppliers.
• Lean Logistics
A closed-loop system of material delivery and container
return from suppliers to customers managed by a Lead
Logistics Provider (LLP).
Other Material Plans

• Hazardous Material Plan
A plan that is required so that hazardous material in our plants is handled in the
appropriate manner to ensure the health and safety of our workforce.
• Indirect Material Plan
A plan that is required so that indirect material in our plants is handled in the
appropriate manner to ensure the health and safety of our workforce.

9
Introduction
Material Movement
Purpose
The purpose of Material Movement is to support flow manufacturing by moving material from
the supplier, through the plant and to the customer in the smallest lot size possible to meet
customer demand. An effective system will, over time, generate a level of tension in the
manufacturing system which helps drive continuous improvement through the elimination of the
seven forms of waste.
Objectives (DMS Gap Assessment - Level 4 Criteria)

The following objectives are achieved through the successful implementation of Material
Movement:
• A Plan for Every Part (PFEP) database is fully implemented, maintained and used for
all current and future model parts to support the implementation of Material Movement
throughout all Value Streams in the plant (How to MM-1).
• Shipments conform to customer requirements. Compliance to ship windows is >99.5%
(How To MM-2-1).
• PC&L and Manufacturing on cadence system that includes shift-by-shift requirements
(How to MM-2-2).
• Purchased parts are delivered directly from supplier to the production area based on an
objective feasibility analysis. Inventory, for all parts and containers, is managed
visually by exception (shortages and overflow), (How to MM-3).
• All parts are received and transported in hand-carriable or tuggable containers and lot
sizes that support flow. Containerization schemes are developed that incorporate
inbound containers into parts presentation and material handling devices. Returnable
containers are implemented mainstream. The operator is presented material in a
condition where he/she can immediately add value (How to MM-4).
• Pull systems are used, and strictly adhered to, linking the pacemaker process to feeder
processes where appropriate (continuous flow, FIFO or sequenced flow do not need
pull). A process is in place to maintain inventory levels, evaluate inventory levels and
update the pull systems regularly (How to MM-5).
• All material and empty containers (purchased, in-process and finished) are delivered
and removed directly from the operator’s workstation based on pull signals at frequent
intervals and on predetermined routes. There is no impact on the operator’s work
envelope (How to MM-6).
• There is 99-100% adherence to scheduled receiving windows (carrier arrival, unloading
and departure). External pull is in place with suppliers on parts with repeatable volume.
High volume parts are delivered multiple times per day if feasible (How to MM-7).

Introduction
Material Movement
MATERIAL MOVEMENT PYRAMID

Figure MM-I-E: Material Movement Pyramid provides a graphic overview of Material
Movement implementation. The pyramid is divided into three sections: the foundation, the
middle layers and the top layers.
The foundation of the pyramid, which is standard for each interdependent element, depicts the
following:
• Delphi Manufacturing System. The Delphi Manufacturing System is made up of six
interdependent elements. It is necessary to have a general knowledge of how each
element contributes to the overall system for successful implementation.
• Leadership. Committed leadership, knowledge, an effective planning process and a bias
towards action, facilitates the DMS system strategy. Leadership must have the
commitment and the necessary tools to successfully implement DMS.
The middle layers (2 through 5) introduce the Material Movement How To’s. The top two layers
of the pyramid, which are also standard for all DMS Interdependent Elements, depict the DMS
goal of becoming a Lean Enterprise and the characteristics that identify a company as agile, lean
and fast to market.
Material Movement Pyramid

LeanEnterprise
Mfg. PC-L Engineering Purchasing Sales
7 BUSINESS PROCESSES ALL LINKED
Customer order today - shiptoday
Agile/LEAN/Fast to Market
6 Build to Order Modularity
MM-7 Supplier Delivery Lean Logistics

5 Scheduled Window
Receiving (Dock Boards)
Container Supplier
Return Process Pull
Frequent Milk Scheduled Pickup Summary
Delivery Runs Pickup Sheets Billing
MM -5 Internal Pull Systems MM-6 Internal Delivery Systems
4 Production Withdrawal Buffer Standardized People Focused Changeover
Pull Pull Management Routes Practices Process
MM -3 Designated Storage MM-4 Container Right Sizing

and Supporting the Operator
3 Supermarket Visual Addressing Empty Container Standard Small Common
/Bulk Storage Management Storage Containerization Lot Lot
MM -1 Plan for Every Part MM-2 Ship to Schedule and Build to Plan
2 Maintenance Planning Production

Leveling
Small
Lot
Buffer
Management
Scheduled Window
Shipping (Dock Boards)
The Foundation
1 Leadership Knowledge Planning Action
Commitment Support Education/Training Communication Expectations Aligned Metrics Follow - up
Flow Delphi Manufacturing System

Manufacturing System Employee Environment Workplace
Design & Involvement Organization Quality Operational Availability Material Movement
Figure MM -I -E: Material Movement Pyramid

11
Introduction
Material Movement
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Delphi
Manufacturing
System
Material Movement

How To’s
Appendices
IDEAL MATERIAL MOVEMENT IN PLANT

The purpose of this section is to introduce you to the material movement and information flow
processes used to support the transformation of an organization from a mass-manufacturing
environment to the time-based principles of flow manufacturing.
In reading this section, you should get a sense of walking virtually through a lean plant and
seeing and hearing the material movement activities that support the Delphi Manufacturing
System. You should also get a better sense of the interrelationship between the six
interdependent elements.
Shipping Dock
At the dock a scheduled window shipping board is used to coordinate each day’s shipping
activity. This board is a working tool that is used to communicate the planned daily ship
windows along with current changes and track carrier conformance to the plan. The board shows
that most customer shipments occur from the same dock door at the same designated times.
Actual customer trailer arrival times are posted on the board, noting early and late arrivals for
problem resolution.
Standardized work instructions are on display in the work area describing each dock worker’s
daily routine. This assures that dock schedules are supported and workloads are balanced for
unloading personnel.
Drivers are removing empty returnable containers from trailers and placing them in inbound
lanes. These containers are accumulated on trailers for movement by a tugger train, at regular
pre-determined times, to production areas. Congested inbound lanes highlight bottlenecks at the
dock operation.
A tugger train returns to the dock with a load of finished goods. Finished goods are picked up
from the assembly area on the driver’s return loop from delivering empty containers to
production. These containers are placed in the outbound staging lanes for subsequent loading
onto trailers that arrive at predetermined window times.
Finished Goods Storage

Finished goods are stored in First In/First Out (FIFO) lanes, identified by customer part number.
Minimum and maximum inventory levels are displayed for each part number. Alarms are
triggered as minimum and maximum stock levels are exceeded.

15
Production Areas
A tour of the production area finds operators with little or no non-value-added time required for
picking parts because parts are presented on chutes, slides, stands or other customized devices
located precisely where the operator needs them. This minimizes the number of operator motions
required to complete their work tasks. Visual aids are posted on each part presentation device to
assist in error proofing the material delivery process and aid the operator in properly identifying
the correct production part(s).
Traditional accumulator conveyors and large buffers between sub-assembly cells are gone. There
are no parts or sub-assemblies stacked on tables or on the floor. Wherever possible, the plant has
been instituting one-piece flow where each sub-assembly is made one at a time and installed
directly to the final assembly. The elimination of excess buffers has allowed sub-assembly
equipment to be placed very close together and adjacent to the install point of the main cell. This
has opened up the area enough to allow for no dead-end aisles. Fork trucks are now only used on
the docks.
Assembly Areas
Assembly areas are scheduled using production leveling by Production Control. Buffers are
developed and tracked by Production Control to smooth customer demand variation. The
production plan for the area is visible on the floor to all operators. Hourly production
performance to the sequenced plan is posted in the area.
Component Areas
Pull cards control component area production. Production Control establishes and maintains pull
loops and buffer sizes between areas. Pull boards in the area convey sequence, volume and mix.
Component storage areas are arranged by part number near the supplying process.
Material Delivery
At regular intervals, a material driver is observed delivering different parts/components on a
standardized route. Pull cards control the number of stops and quantity of parts delivered on each
route. The production workstation is labeled and parts are easily accessible within the production
operator’s work envelope. The operator installs the part without wasting time handling wrapping
paper, plastic bags, separators or other dunnage.
A material driver stops his tugger train at a material delivery address and off-loads cartons onto a
part presentation device customized to meet the operator’s requirements. Lifting and loading
containers onto the part presentation device meet ergonomic guidelines for the material driver.

The material driver retrieves empty containers and pull cards from their designated location at
each stop.
Any empty disposable container is dropped off at a baler or compactor in or en route to the
supermarket. Returnable containers are accumulated in a designated storage/sort area in the
supermarket and moved to the dock on a regular route for return to the suppliers.
A material driver is seen delivering indirect materials from General Stores directly to the
production department. All General Stores material is delivered to production on a pull system
delivery route. Previously, production utility personnel were required to leave their work areas
for long periods of time to walk to General Stores and wait to get their required items. Now the
production personnel are able to stay in their work areas to focus on building product.
Supermarket and Bulk Storage Areas

The supermarket area contains hand carriable parts. Each part number has a clearly marked
designated storage location. Parts are displayed by delivery route. Most of the containers in the
supermarket are on roller racks that are loaded (stocked) from one aisle and unloaded (picked)
from the other. Use of roller racks supports a FIFO inventory management process.
Inventory minimums and maximums for each part number are identified at each storage location.
These minimums and maximums are maintained through a Plan for Every Part (PFEP). PC&L
operators trigger alarms whenever minimum or maximum container quantities are reached.
Near the receiving dock, there is a designated bulk material storage area. Storage is arranged by
part number and designed for FIFO. The part numbers requiring bulk delivery are kept to a
minimum.
A schedule is posted indicating when each delivery cycle begins on the timed standardized
delivery route. A material driver arrives on an easily mountable/dismountable tugger pulling a
train of empty carts. The driver has the withdrawal pull cards gathered on the last delivery cycle.
These cards are placed at a well-marked designated location where the supermarket attendant(s)
retrieves and uses them to prepare the next delivery with both hand carriable containers from the
supermarket and bulk containers from the bulk storage area. Another train of trailers or carts is
ready for delivery loaded with full containers each with its corresponding pull card.
Leaving the supermarket we see a different tugger train approaching. These carts are bigger and
are loaded with several pallets of full containers. This is the regular delivery of material unloaded
from trailers at the receiving dock. Previously, there would have been several fork truck drivers
coming and going with individual loads of material from the dock to several warehouse racks
located throughout the plant. The dock tugger driver unhooks from the loaded trailers, re-hooks
to the empty trailers and returns to the dock to park empty trailers for the next cycle.

17
Receiving Dock
At the receiving dock, a scheduled window receiving board coordinates each day’s receiving
activity. This board is a working tool that is used to communicate the planned daily
unload/reload windows (along with current changes) and track carrier conformance to the plan.
The board shows that receipts are balanced across the week.
Standardized work instructions are on display in the work area describing each dock worker’s
daily routine. This assures that dock schedules are supported and workloads are balanced for
unloading personnel. Supplier ship frequencies are coordinated to level flow to the receiving
dock. The ship frequencies for every part have been increased without increasing the cost of
inbound freight. Most parts are received at least once per day.
Drivers are removing material from trailers (preferably side-load trailers) and placing it in
inbound lanes. All material is received in small lot containers specified by the Delphi Packaging
Manual. Congested inbound lanes highlight bottlenecks at the dock or unplanned receipts. This
material is accumulated on trailers for movement to the supermarkets and the bulk storage area.
A tugger train returns to the dock with a load of empty returnable containers. A trailer loaded
with empty containers was picked up at the plant sort area on the driver’s return loop from
delivering material to the supermarket. These returnable containers are placed in the outbound
lanes for loading into the trailers and subsequent return to the suppliers as part of a closed loop
system.
Raw materials are replenished through an external pull system. The supplier’s delivery driver (or
receiving personnel) places each pull card that is removed from the on-delivery pull card box
onto its respective container. When the material is consumed from each container, the attached
card is removed and placed in a pull card post with the other cards indicating material to be
replenished. The cards are collected at prescribed times throughout the day and are entered into
the scheduling system as replenishment signals to the supplier. The supplier ships according to
the pull signal at the prescribed window time.
The plant PC&L team evaluates every part number used at the plant in the PFEP on a recurring
basis. They use the wall process in the plant communication center to help identify opportunities
and potential solutions. The intent of this activity is to best support the operator at each operation
and to economically handle, receive, transport and package the required parts.

Material Movement Standards

The following standards were developed by the Lean Material Flow Circle of Colleagues to
provide consistent application of material movement from our outside suppliers to the first point-
of-use in our manufacturing facilities. The intent of these standards is to differentiate between
those activities that are required and those items that provide direction. The use of will suggests
absolute, while should suggests directional implementation.
General Standards
1. There will be a material flow plan for every part at every site.
2. The PFEP system will be common across divisions.
3. Part attribute data management will be the responsibility of the plant Production Control &
Logistics organization.
4. Standardized work instructions will be defined for all material handling operations, through
utilizing the wall process.
5. Standardized work instructions and lean material flow procedures will be posted in work
envelope.
6. Supplier and carrier non-conformance(s) will be tracked at each receiving location.
Plant Floor Material Delivery
7. All containers will be presented with the first piece of material available to the operator in the
required orientation.
8. Pull card loops will be calculated based on first piece consumption.
9. All parts or kits will be delivered to the operator via pull signal, or on timed standardized
delivery routes based on consumption, with direct line delivery from the supplier being the
goal.
10. Line side material should not exceed four hours.
11. Material will not be delivered line side by fork truck.
12. Material handlers will remove empty containers upon delivery of full containers.
13. Material handlers will transfer material from the existing container to the full container upon
delivery of bulk material.
Purchased Parts Storage
14. Storage will be governed by FIFO principles.
15. There will be one central supermarket and bulk storage area for each plant until material is
delivered directly to first point-of-use from the supplier (direct line delivery).
16. For each part there will be one storage area within the plant that accommodates the entire loop.
17. Layouts will follow common DMS (Delphi Manufacturing System) address schemes.
18. All storage locations will have DMS (Delphi Manufacturing System) visual controls.
19. Until it can be eliminated, overflow material will have a designated storage area, managed with
visual controls.
20. Hand carriable containers should be depalletized before storing.
21. Supermarkets will be arranged by supplier within an internal delivery route considering
ergonomic guidelines.
22. Planned inventory will be calculated utilizing PFEP data based on buffers required to cover
ship frequency, schedule variation, cumulative material lead time and risk.

19
Dock/Receiving
23. Unloading and reloading work content will be leveled across the production shifts.
24. Unloading and reloading of conveyances will be scheduled to windows displayed on a
scheduled window receiving board and the performance will be tracked for improvement
opportunities.
25. Live unload/reload versus drop and hook will be evaluated on a lane-by-lane basis.
26. Shipments will be received without checking or delays at the dock, unless specified by the
customer.
Transportation
27. Purchased parts will be picked up and delivered, at a minimum, once every day.
28. The pick up carrier’s driver will check standard package quantities at the time of pick up
against scheduled quantity (drop and hook will be a paper check).
29. Overshipments will be refused by the pick up carrier.
30. Undershipments and delays at the supplier(s) will be reported immediately by the carrier driver
to the receiving plant for follow up with the supplier.
31. Mode, frequency, cube and equipment type will be determined on the total system optimization
32. Logistics modeling capability will be used to optimize the total material pipeline.
33. Shipments will be available at the receiving plant dock at the designated window time.
34. Freight costs will be billed on a summary basis with individual shipment detail versus freight
bills for individual shipments.
35. Suppliers will use authorized carriers for all modes of transportation.
36. Carriers will notify the plant of any transportation delays.
Supplier Scheduling
37. Parts shipments will be authorized via a pull and should be based on level production required
to replenish a finished goods buffer.
38. All suppliers will meet Delphi electronic communication requirements.
39. Raw material commitment and fabrication authorization should be zero/zero.
40. All schedules will be in standard pack quantity, in the lowest level shippable container.
Suppliers
41. Suppliers will be selected considering quality, technology and least total part cost.
42. Suppliers will have shipping capability that matches receiving plant’s normal production
schedule.
43. Suppliers will notify the receiving plant if a shipment will be late or short prior to pick up.
44. Parts containers will be labeled according to Delphi common standards, with up-to-date dock
delivery (storage) locations.
45. Suppliers, at their cost, will make up all undershipments via premium transportation in order to
meet the original scheduled destination window.
46. Suppliers will deliver parts in the prescribed small lot containers.
47. Suppliers will be able to ship (and plants able to receive) mixed part numbers on a pallet.

Returnable Container Control

48. All returnable containers will be double-badged with the supplier name and location as well
as the Delphi receiving plant name and location.
49. Returnable containers will be sorted by supplier badge and returned according to a planned
ship schedule.
50. At the time of return shipment, container quantities will be specified on a common container
return manifest.
51. Supplier will sign for their empty containers upon receipt.
52. Container return documentation will be maintained by the responsible Delphi plant as an
audit trail.
53. All re-usable dunnage will be returned to the supplier inside the original container.
54. Suppliers will be responsible for cleaning containers and dunnage, removing labels and
sorting for damage.
Packaging
55. Parts should be packed in returnable containers and dunnage.
56. Hand carriable packaging is the rule, bulk is the last resort.
57. Standard packs should be one hour or less for hand carriable containers and four hours or less
for bulk.
58. Weight of the standard pack should be determined through evaluation using Delphi
ergonomics guidelines (see Delphi Manufacturing Engineering Ergonomics Guidelines and
the Delphi Ergonomics Worksheet for Container Design at
http://apollo.delphiauto.net/health_safety/ergonomics/design-in.htm).
59. Containers will be selected according to the Packaging C.O.E. guidelines.
60. Parts will be oriented properly in the container for the operator.
61. Returnable containers will be justified on a system basis.
62. All containers will have pull cardholders.
63. Containers will be designed without dunnage wherever possible.
64. Standard packs should be in common lots (factors of 60).
Reference/Source Material
• Delphi Packaging Manual.

21

Delphi
Manufacturing
System
Material Movement
How To’s
Appendices
MM-1 Plan for Every Part
MM-1 PLAN FOR EVERY PART (PFEP)

Plan for Every Part is a material planning process that identifies/creates a detailed material
flow plan for every part in the supply chain. The data required to create, maintain and improve
the plan is stored in an electronic database. The plan begins with the customer and works back
through to the supplier with the goal of supporting the operators and eliminating waste in the
supply chain.
Objectives
Listed below are the objectives of MM-1 Plan for Every Part:
• Create the PFEP database by collecting the current data describing each part (manual or
automatic downloads from existing information systems). Load the data into the
standard common shared electronic database.
• Use the PFEP database to create the material flow plan for each part in the supply
chain, from supplier to final use.
• Use the PFEP database and the material flow plan to identify and support continuous
improvement activities in the supply chain such as identifying and improving delivery
frequency, ergonomics, containerization, transportation, inventory control, etc.).
• Maintain and audit the PFEP database as changes occur.
Lean Process Indicators (For Local Analysis)

Listed below are lean process indicators for MM-1 Plan for Every Part:
• Number and percentage of parts with complete PFEP.
• Number and percentage of parts shipped in manually handled containers and common
lot sizes.
• Number and percentage of containers conforming to the Delphi Supplier Standard
Container Menu.
• Potential and actual shipping frequency for each part number (e.g. Every Part Every
Frequency EPE(x)).
• Total number of suppliers.
• Number and percentage of parts on external milk run deliveries.
• Number and percentage of parts stored in supermarkets or delivered directly to line
side.
• Number and percentage of parts delivered by internal delivery routes.
• Total planned inventory (e.g. days on hand, total dollars, ABC classification, pieces, etc.).

25
Characteristics of an Effective Plan for Every Part

Listed below are characteristics of an effective plan for every part:
• Reduction of non-value-added work throughout the supply chain.
• Increased flow of material through the supply chain at the lowest total cost.
• Safe, effective and efficient material movement and storage.
• Accurate and timely data that supports other organization business processes (e.g. PDP,
transportation, purchasing, MSD, etc.).
Prerequisite
Prior to implementing MM-1 Plan for Every Part it is necessary to have the appropriate computer
hardware, software and communications.
How To (Summary/Detail)
Listed below is summary/detailed information on how to implement MM-1 Plan for Every Part:
1.1 Establish the PFEP owner from the PC&L organization.
1.2 Review the Delphi Global PFEP Business Procedures.
1.3 Train personnel as required to use the PFEP software.
1.4 Collect the data and populate the PFEP database.

(Refer to Figure MM-1-A: PFEP Database Fields in the Attachment section.)
1.5 Establish the business process to maintain, audit and update data as
required.
• Recruit functional areas to assist in obtaining and maintaining data.
• Timely updates, maintenance and audits are necessary to keep data accurate and
consistent.
1.6 Train all users of the PFEP database.
1.7 Use the PFEP to support the elimination of waste.

• Material Movement Standards (Ideal Material Movement in Plant), Lean Material
Flow Circle of Colleagues.
• Delphi Business System Manual. Available on Apollo, Delphi Business System Web
Site (http://apollo.delphiauto.net/customersatisfaction/bstt/dbs/dbs.htm)
Attachment
• Figure MM-1-A: PFEP Database Fields provides a description of the Delphi Global
PFEP Database Fields.

27
Delphi Global PFEP Database Fields (Figure MM-1-A)
1 Material Alphanumeric key uniquely identifying the material.

2 Material Description Text containing up to forty characters that describes the material.
3 Plant Key uniquely identifying a plant.
4 MRP Controller Specifies the number of the MRP controller or group of MRP
controllers responsible for material planning for the material
(expediter, scheduler, etc.).
5 Procurement Type Indicator that defines how the material is procured.
6 Net Weight Net weight expressed in the unit of weight specified by owner in the
unit of weight field.
7 Weight Unit Unit referring to the net weight of the material (lbs., ounces, kilos,
grams, etc.).
8 Min Order Quantity Minimum procurement quantity.
9 Annual Volume Projected total annual volume in the purchasing contract.
10 UOM for Annual Volume Unit of measure for annual volume (pieces, ounces, kilos, meter,
etc.).
11 Ave. Daily Usage Average daily use of the part number for that site or plant.
12 Standard Carrier Access The unique carrier identifier code for logistics purposes.
Code (SCAC)
13 Dock Code The unique dock identifier code for a site or plant.
14 Standard Pack Quantity Value of the multiple to which the system rounds up the procurement
quantity.
15 Primary Cont. Type Standard description of primary container (tote, 4131, casket, carton,
etc.).
16 Primary Cont. (R/E) Designate the primary container returnable or expendable.
17 Primary Cont. (L) in inches Primary container length in inches.
18 Primary Cont. (W) in inches Primary container width in inches.
19 Primary Cont. (H) in inches Primary container height in inches.
20 Primary Empty Cont. Weight Primary container weight when it is empty (lbs., ounces, kilos,
grams, etc.).
21 Primary Full Cont. Weight Primary container weight when it contains a standard pack of
material (lbs., ounces, kilos, grams, etc.).
22 Primary Packs per Layer Total number of primary containers per layer in a secondary
container, such as a standard pallet.
23 Layers per Secondary Pack Total number of layers of primary containers in a secondary
container, such as a standard pallet.

24 Secondary Container Type Description or code of the secondary pack, such as a pallet or basket.
25 Secondary Cont. (R/E) Designate the secondary container returnable or expendable.
26 Secondary Cont. (L) in Secondary container length in inches.
inches
27 Secondary Cont. (W) in Secondary container width in inches.
inches
28 Secondary Cont. (H) in Secondary container height in inches.
inches
29 Secondary Empty Cont. Secondary container weight when it is empty (lbs., ounces, kilos,
Weight grams, etc.).
30 Secondary Standard Pack The standard pack quantity of primary containers in a secondary
container.
31 Stack Qty - Secondary Pack The allowable stack height of secondary containers with a standard
pack.
32 Container Return Ratio The ratio between full and empty containers for return planning (ex:
collapsible totes).
33 Packaging Contact The engineer or packaging contact responsible for packaging on a
particular part number.
34 Packaging Contact Phone The telephone number of the engineer or packaging contact
responsible for packaging on a particular part number.
35 Packaging Contact Fax The fax number of the engineer or packaging contact responsible for
packaging on a particular part number.
36 Method to Secure Load Any special instructions for securing full or empty containers.
37 Material Category Description of the material being shipped and handled, especially
hazardous material.
38 Packaging Comments 1 Any other comments relative to packaging, containers, or handling.
41 Repackage Denotes if material is repackaged from its original container as

received.
42 Delivery Days The days of the week that this part number is normally received.
(Refer to MM-7.1 Scheduled Window Receiving).
43 Daily Delivery Frequency The planned number of deliveries for this part number within a
delivery day.
44 Delivery Time The window times for receiving this part number.
45 Delivery Loc. Add. The first internal material delivery point for the part number.
46 Del. Route Name The name of the delivery route for this part number (ex: Blue Route,
Route One, etc.).

29
47 Del. Route No. of Stops Total stops on the internal delivery route that includes this part
number.
48 Department The internal manufacturing departments that use this part number.
49 Empty Cont. Storage Add. The internal storage address for the empty containers of this part
number.
50 Max. Storage The maximum number of standard packs to be stored in the plant for
this part number.
51 Min. Storage The minimum number of standard packs to be stored in the plant for
this part number.
52 Purchasing Organization Denotes a Purchasing Organization.
53 Purchasing Group Buyer Code.
54 Order Unit Specifies the unit of measure in which the material is ordered.
55 Pc. Price The rate that determines how the system calculates pricing using this
condition.
56 Currency Currency in which the piece rate is maintained.
57 Vendor Alias An abbreviated name, acronym, or alphanumeric code for a vendor.
58 Transit Time in hours Total hours from supplier shipping dock to plant receiving operations
in hours (ex: 3 days = 72 hours).
59 Transportation Mode Planned normal mode of transportation (ex: truck).

60 Vendor DUNS Dun & Bradstreet number of the vendor.
61 Vendor Name Vendor name.
62 Street Street address.
63 Postal Code Postal code as part of the address.
64 Vendor City City as part of the address.
65 Region State, province, or county of the vendor.
66 Country Country of the vendor.
67 Vendor Contact Vendor contact person.
68 Telephone Telephone number, consisting of dialing code and number.
69 Fax Number Fax number, consisting of dialing code and number.
70 Vendor Contact E-mail Add The e-mail address for the primary vendor contact for this part
1 number.
71 Vendor Contact E-mail Add The e-mail address for the primary vendor contact for this part
2 number.
72 Vendor Comments Any comments regarding the vendor of this part (ex: contact cell
phone number).

73 Purchasing Document Purchase Order or Scheduling Agreement number.

74 Purchasing Document Purchase Order or Scheduling Agreement validity start date.
Validity Start Date
75 Purchasing Document Purchase Order or Scheduling Agreement validity end date.
Validity End Date

31

MM-2 Ship to Schedule Build to Plan
Overview
MM-2 SHIP TO SCHEDULE BUILD TO PLAN

Ship to Schedule Build to Plan is the process of shipping to the customer exactly what is
requested by manufacturing to a repeatable plan that maintains a known range of finished goods
inventory. The finished goods inventory is implemented to buffer the manufacturing operation
from the variation in customer pulls. This is a two-step process that includes Scheduled Window
Shipping and Production Leveling.
• Scheduled Window Shipping is a specific dock schedule allocating days and times of
day for delivery of empty finished goods containers and pick-up of finished goods
(Shipping to Schedule).
• Production Leveling is a technique that buffers the manufacturing process from the
variation of the customer demand by scheduling the pacemaker process (usually final
assembly) to execute a repeatable production schedule (Building to Plan).
The subsections MM-2.1 Scheduled Window Shipping and MM-2.2 Production Leveling include
objectives, elements of effective implementation, prerequisites, How To (Detail) and additional
information for each of these How To's.
How To (Summary)
Listed below is a summary of the implementation steps for MM-2 Ship to Schedule Build to
Plan:
2.1 Scheduled Window Shipping.
2.1.1 Define Shipping Windows.
2.1.1.1 Develop a cross-functional team (PC&L, Shipping, IE).
2.1.1.2 Collect window requirements for all customers by time and normal
shipment quantity.
2.1.1.3 Actively involve shipping dock personnel (all shifts) in establishing
priorities and identifying restrictions, constraints and issues.
2.1.1.4 Rationalize the number of required docks.
2.1.1.5 Develop preliminary window assignments.
2.1.1.6 Review preliminary assignments with office and dock personnel.
2.1.1.7 Contact customers.
2.1.1.8 Contact carriers.
2.1.1.9 Finalize dock assignments.
2.1.1.10 Implement window assignments.
2.1.1.11 Design Scheduled Window Shipping Board and develop guidelines
regarding procedures and Standardized Work with input from dock
personnel.
2.1.1.12 Design Scheduled Window Shipping Countermeasures Worksheet and
develop guidelines regarding procedures and Standardized Work with
input from dock personnel.
2.1.1.13 Implement Workplace Organization in the Shipping Area.
2.1.1.14 Update Plan for Every Part (PFEP) based on new shipping plan.
33
MM-2 Shipping to Schedule Building to Plan
Overview
2.1.2 Design and implement process for staging and delivery of empty finished goods
containers and finished goods.
2.1.2.2 Design the layout of the supermarket area (How To MM-3-1
Supermarkets) and dock staging area.
2.1.2.3 Develop a material delivery plan for moving material from the finished
goods supermarket to the dock staging area.
2.1.2.4 Develop a container delivery plan for returning empty containers from
the dock staging area to the empty container storage area.
2.1.2.5 Identify the type of equipment required to move material from the
finished goods storage to the dock staging area.
2.1.2.6 Identify the type of equipment required to move empty containers from
the dock staging area to the empty returnable container storage area.
2.1.2.7 Develop Standardized Work for material and dock personnel.
2.1.2.8 Establish process for monitoring the delivery of finished goods and
dunnage.
2.2 Production Leveling
2.2.1 Develop a cross-functional team (Mfg., PC&L, IE, ME).
2.2.2 Identify pacemaker process (generally final assembly) to be leveled from the future
state value stream.
2.2.3 Gather data.
2.2.4 Fill out the Changeover Frequency Worksheet.
2.2.5 Develop a Manufacturing Plan.
2.2.6 Determine Cycle Stock (Running Stock) Plan by part number.
2.2.7 Develop a buffer for each part number.
2.2.8 Develop a load leveling schedule.
2.2.9 Develop a plan to handle the exceptions and make continuous improvement.
2.2.10 Develop a schedule attainment metric.

MM-2 Ship to a Schedule Build to a Plan
MM-2.1 Scheduled Window Shipping
MM-2.1 SCHEDULED WINDOW SHIPPING

Scheduled Window Shipping is a specific dock schedule allocating days and times of day for
delivery of empty finished goods containers and pick-up of finished goods (Shipping to
Schedule).
Objectives
Listed below are the objectives of MM-2.1 Scheduled Window Shipping:
• Schedule all dock activities including Truckload, Milkrun, LTL, Railcar and Premium
(working within the requirements of the customer).
− Allow for specific assignments and improved utilization of dock personnel resulting
in more ownership and accountability in the process. These activities become the
basis for dock Standardized Work.
• Achieve levelness (working within the requirements of the customer).
− Utilize dock personnel efficiently.
− Balance multi-day shipments throughout the day.
− Even workload throughout the day and week for every dock.
− Allow for inventory reduction due to more predictable and level shipping schedule.
− Reduce equipment requirements.
− Improve control/coordination of drivers.

Listed below are the lean process indicators for MM-2.1 Scheduled Window Shipping:
• The ship window board displays current schedule and actual ship times.
• Countermeasures for non-conformances are tracked on the dock.
• Minimum driver idle time.
• Alarms are triggered when empty containers are not received in the appropriate
quantity.
• Standardized Work instructions for drivers are current and visible in the work area.

35
MM-2.1 Scheduled Shipping Windows
Elements of Effective Scheduled Window Shipping

Listed below are elements of effective Scheduled Window Shipping. The same elements apply at
3rd party shipping or empty container processing facilities.
• Carriers arrive at the designated door at the scheduled window.

• Operating guidelines are established and published which describe the carrier, the
customer and the plant responsibilities.
• Dock work is leveled across each shift.
• Visual aids are in place for the dock and office personnel to communicate schedule and
track actual performance for each carrier, commodity, dock and time.
• Windows are scheduled by week, day and hour to level the workload of material
handling personnel and inventory in the plant.
• Resources are allocated for each window.
• Customer windows are balanced with interplant or unscheduled windows (i.e.
premium) to level workload.
• Staging areas (where necessary) are:
− Organized in loading sequence.
− Visually marked at each dock and used to stage empty finished goods containers to
the empty container storage area or finished goods from the finished goods
supermarket.
• A tracking and feedback system for the supplier/customer and carrier is in place to
communicate performance and resolve problems.
• Shipments are error proofed for proper destination, part numbers and quantities.
• A process is in place to:
− Assure that carriers notify the plant promptly if a window is delayed.
− Notify the receiving plant of any delays.
− Handle shipments that will not arrive within their scheduled time (window).
− Address non-conformance to windows.
− Provide rapid feedback to customers and carriers regarding performance.
− Resolve problems.
• Tuggers and trailers are used to move material to/from docks (where possible).
• Safety requirements are met.

• Deliveries of empty containers and shipments of finished goods are verified for correct
identification and quantity.
• The number of drivers required has been determined based on the amount of work
content and the ship window time.
• Drivers are fully utilized by balancing unload/reload activity with non-cyclical activity
(stock rotation, load preparation, container storage, etc.).
Refer to Figure MM-2-A: Issues/Advice - Scheduled Window Shipping for tips on effective
implementation.
Issues/Advice
Scheduled Window Shipping
• Manage the docks using visual controls.

• Loading directly onto the truck eliminates dock staging areas, reducing one handling step.
• Keep visible records of carrier on-time and late performance.
• Contact customers to request ship window time changes, if there are too many scheduled for
a particular time.
• Require carriers/drivers to call the plant if they will be delayed.
• To avoid disrupting window schedules, unload/load trailers that are on schedule first. Require
late trailers to wait until first available dock.
• Communicate carrier performance to carriers through Logistics (PC&L).
• Regularly review shipping windows to ensure they meet business needs (model mix, schedule
changes, etc.).
• Be aware that various related problems can disrupt the window schedule (labor/equipment,
bad weather, customs clearances).
Figure MM-2-A: Issues/Advice - Scheduled Window Shipping

37
Prerequisites
Prior to implementing MM-2.1 Scheduled Window Shipping, obtain following information:
• Customers’ ship windows.
• Transportation information (carrier, mode and transit time).
• Estimated number of lifts per truck.
How To (Detail)
Listed below is detailed information on how to implement MM-2.1 Scheduled Window
Shipping:
2.1 Scheduled Shipping Windows

2.1.1 Define Window Shipping.
2.1.1.2 Collect window requirements for all customers by time and normal
shipment quantity.
2.1.1.3 Actively involve shipping dock personnel (all shifts) in establishing
These constraints and issues could include:
• Specialized equipment restrictions.
• Unloading and reloading time factors.
• Local labor agreements.
Consider the following:
• Customers’ ship windows.
• Transportation information (carrier, mode, transit time).
• Planned shipping patterns.
• Number of fork truck lifts per truck.
• Priorities, restrictions, constraints, issues identified by dock personnel.

Helpful
• Develop customer ship
Hint
windows first.
• Coordinate other plant
shipping windows with
customer ship windows.

2.1.1.7 Contact customers.
Verify the following:
• Volumes.
• Packaging.
• Targeted receiving windows.
• Window availability.
Verify the following:
• Transit time.
• Commitment to windows.
• Communicate assignments to dock and material office.
• Adjust banks and ship frequencies as required.
• Update supermarket visual controls as required (ie. min./max.).
• Issue letter to customer and carrier confirming start date.

39
2.1.1.11 Design Scheduled Window Shipping Board and develop guidelines

regarding procedures and Standardized Work with input from dock
personnel.
Figure MM-2-B: Scheduled Window Shipping Board depicts a sample
Scheduled Window Shipping Board, which is described below:
• Post scheduled windows (Carrier - Customer) daily at start of shift
using prelabeled magnetic strips.
• The height of each strip represents the total authorized unload/reload
time for that truck.
• Carriers are color coded for visual management.
• As carriers come in, dock personnel place a visual indicator (magnetic
dots) of on-time status for that carrier as follows:
− Green - Carrier on-time and complete shipment loaded within
window.
− Red T - (Transportation) Carrier non-conformance to 1/2 hour
shipping window.
Record carrier, date, time, issue/activity and countermeasure on
countermeasure worksheet (Figure MM-2-C).
− Red P - (Production) Production quantity non-conformance.
Record date, time, issue/activity (part number and supplier) and
countermeasure on countermeasure worksheet (Figure MM-2-C).
− Red D - (Dock) Dock delay.
Record carrier, date, time, issue/activity and countermeasure on
countermeasure worksheet (Figure MM-2-C).
Helpful
Hint
• Keep the Scheduled Window Shipping Board
simple and easy to maintain.
• Highlight the length of time allocated to
unload/reload each trailer on the board and
audit on a regular basis.


Date: Docks
Time 1 2 3 etc.
6:00 AM Carrier
Carrier 11
(Customer
(Customer A)A)
Carrier
Carrier 44
6:30 AM (Customer
(Customer F)F)
T
T
Carrier
Carrier 22
7:00 AM (Customer
(Customer C)C) P
P
T
T
Carrier
Carrier 11
Current
7:30 AM (Customer
(Customer B)B) D
D
Carrier
Carrier 33
Time Carrier
Carrier 33
(8:45 AM) 8:00 AM (Customer

(Customer D)D) (Customer
(Customer D)D)
Carrier
Carrier 44
(Customer
(Customer F)
8:30 AM F)
Carrier
Carrier 22
9:00 AM (Customer
(Customer D)D)
Carrier
Carrier 11
9:30 AM (Customer
(Customer H)H)
10:00 AM Carrier
Carrier 22
(Customer
(Customer D)D)
Carrier
Carrier 11 Carrier
Carrier 33
10:30 AM (Customer
(Customer G)G) (Customer
(Customer J) J)
11:00 AM
11:30 AM
etc.
= Met Window
P
P = Production Issue (Shortage)
KEY: T
D
Figure MM-2-B: Scheduled Window Shipping Board

41
2.1.1.12 Design Scheduled Window Shipping Countermeasures Worksheet

and develop guidelines regarding procedures and Standardized Work
with input from dock personnel.
Dock personnel must adhere to established shipping windows and record
non-conformances on Monitoring Board. Figure MM-2-C:
Countermeasure Worksheet depicts a sample Countermeasure
worksheet, which is described below:
• The countermeasure worksheet contains carrier, date, time,
issue/activity, countermeasure and sign-off at a minimum.
• Dock personnel review countermeasure worksheet with supervisor
daily.
• The documented countermeasure worksheet is removed and forwarded
to Logistics weekly.
• Chronic carrier problems generate a 5-Phase action plan.
• Responses are be shared by Logistics and dock personnel upon receipt.
• Some potential reasons for missed window times:
Carrier Responsibility: Customer Responsibility:
• Weather Delay. • Dock Space Not Available.
• Breakdown. • Unloading/Loading Delay.
• Multi-drop off (Dock Delay). • Insufficient Drivers for Switching.
• Traffic Delay. • Parts Not Available.
• Dispatch Delay. • Other (Explain).
• Accident.
• Other (Explain).

Countermeasure Worksheet
(P) Production
(T) Transportation
(D) Dock Date Time Carrier Issue/Activity Countermeasure
rd
Truck 25 min. late - 3 time
T 3/15 7:00 AM Carrier 2 this week! Transportation to call
P 3/15 7:00 AM Carrier 2 Short p/n 12345678 Make-up on 3/16 truck
T 3/15 7:30 AM Carrier 1 Truck 45 min. late - snow
Routed truck to dock 3, door called in to

D 3/15 7:30 AM Carrier 1 Dock door stuck-delayed maintenance
Figure MM-2-C: Countermeasure Worksheet

2.1.1.13 Implement Workplace Organization in the Shipping Area.

Refer to How To WO-3 Address System. Implement Workplace
Organization for the following:
• Dock bay identification.
• Staging lane designations.
2.1.2 Design and implement process for staging and delivery of empty finished goods
containers and finished goods.
2.1.2.2 Design the layout of the supermarket area (How To MM-3-1
Supermarkets) and dock staging area.
2.1.2.3 Develop a material delivery plan for moving material from the
finished goods supermarket to the dock staging area.
2.1.2.4 Develop a container delivery plan for returning empty containers
from the dock staging area to the empty container storage area.
finished goods storage to the dock staging area.
2.1.2.6 Identify the type of equipment required to move empty containers
from the dock staging area to the empty returnable container storage
area.
2.1.2.7 Develop Standardized Work for material and dock personnel.
2.1.2.8 Establish process for monitoring the delivery of finished goods and
dunnage.
Note: After this process has been implemented and is in full operation, address
continuous improvement opportunities. The monitoring tools described
will aid the dock, suppliers and carriers in recognizing possible problems
and taking appropriate action to solve them.
• Material Movement Standards (Ideal Material Movement Plant), Delphi Lean Material

43

MM-2.2 Production Leveling
MM-2.2 PRODUCTION LEVELING

Production Leveling is a technique that buffers the manufacturing process from the variation of
the customer demand by scheduling the pacemaker process (usually final assembly) to execute a
repeatable production schedule (Building to Plan).
Customer requirements are shipped from finished goods inventory (Shipping to Schedule). The
pacemaker process pulls material from all feeder segments of the value stream. To determine the
best routings, sequence and changeovers to balance man, machine and material, PC&L and
Operations formulate the manufacturing plan together. PC&L schedules the pacemaker process,
operations executes the production plan enabling PC&L to ship to customer demand.
As shown in Figure MM-2-D: Workload-With/Without Leveling, by creating a level schedule

the workload variation of production and support personnel is reduced allowing more consistent
and minimum utilization of resources.
Production Without Production With Leveling

Resources Leveling Resources
Required Required
Time Time
Figure MM-2-D: Workload-With/Without Leveling
With regards to variation, the normal distribution describes situations where observations are
distributed symmetrically around the average (mean). 68% of all values under the curve lie
within +/- one standard deviation of the mean, 95% lie within +/- two standard deviations and
99.7% lie within +/- three standard deviations. (Refer to Figure MM-2-E: Normal
Distribution.)
+ 3 S T D E V
+ 2 S T D E V
+ 1 S T D E V
9 9 .7 % 9 5 % 6 5 % ----------- 5 0 % ------------------- ------ ------ ------ ------ ------ ------ ------ ----
-1 S T D E V
- 2 S T D E V
-3 S T D E V
Figure MM-2-E: Normal Distribution

45
As depicted in Figure MM-2-F: Variation in Traditional vs. Level Scheduling, traditional

scheduling allows variation in schedule and inventory to increase in each upstream process. With
level scheduling, final assembly is leveled, building to a repetitive sequence and quantity, using
the finished goods buffer to absorb the customer demand variation to reduce schedule variation
and manage inventory buffers.
T r a d it io n a l S c h e d u lin g
F in a l A s s e m b ly B u ild s to E x a c t D e m a n d
S u p p lie rs P ro c e s s in g Pacem aker /

I I A s s e m b ly
I
F in is h e d
G oods C u s to m e r
I n v e n to r y D em and
B ank V a r ia tio n
V a r ia tio n in s c h e d u le a n d in v e n to r y in c r e a s e s in e a c h u p s tr e a m p r o c e s s
L e v e l S c h e d u lin g
F in a l A s s e m b ly L e v e le d , B u ild s to R e p e titiv e S e q u e n c e a n d Q u a n tity
S u p p lie rs P ro c e s s in g Pacem aker /

A s s e m b ly
F in is h e d C u s to m e r
S c h e d u le v a r ia tio n is r e d u c e d a n d in v e n to r y b u ffe r s a r e m a n a g e d . G oods D em and
B u ffe r V a r ia tio n
V a r ia tio n is a b s o r b e d h e r e !
MM-2-F: Variation in Traditional vs. Level Scheduling
A good place to start to minimize inventory is to match individual part number build frequency
with ship window frequency Every Part Every Frequency EPE(x). In the example below, Figure
MM-2-G: Ship Windows, a good place to start with developing build frequencies would be to
build Part A four times per day, Part B twice per day, Part C once per day and Part D twice per
week.
7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM

Monday B A C A A B A
Tuesday B A C A A B A
Wednesday B A C A D A B A
Thursday B A C A A B A
Friday B A C A D A B A
Figure MM-2-G: Ship Windows

A
B
A
B
A
C
A
B
A
B
A
C
A
D
A
A
B
A
B
A
C
A
B
B A
B
A
C
A
D
C
A
B
A
D
C
A
Mon Tue Wed Thu Fri Mon Tue Wed Thu Fri
Figure MM-2-H: Traditional (Batch) Scheduling Figure MM-2-I: Level Scheduling
Traditional (Batch ) Scheduling Level Scheduling

(Refer to Figure MM-2-H) (Refer to Figure MM-2-I)
• Upstream processes and suppliers receive • Upstream processes and suppliers
requirements for component “A” on receive pulls uniformly from day to
Monday, Tuesday and Wednesday, day.
component B on Wednesday and Thursday,
component C on Thursday and component
D on Thursday and Friday.
• Finished goods inventory must be large to • Shipments are drawn from calculated
maintain customer demand on the days finished goods buffers that are
other products are running. replenished by the production schedule.
• Work-in-process and component inventory • Work-in-process inventory can be
must be maintained at higher levels to reduced substantially.
support batch production schedules.
• Parts shortages cause manufacturing to build • The capability to effectively use
whatever is available, changing the plan and internal and external pull systems is
greatly affecting suppliers (whipsaw). improved.
• Demand to suppliers can fluctuate greatly. • Variation in daily requirements within
the plant and with suppliers is
minimized, which has the effect of
smoothing the supply chain.
• No incentive to improve changeover times • Requires ability to changeover
due to infrequent model changes. frequently, have higher uptime and
control over quality problems which
will reduce cost.

47
Objectives
Listed below are the objectives of MM-2.2 Production Leveling:
• Fully utilize resources and reduce costs.
• Reduce variation in the value stream.
• Increase our ability to meet customer demand.
• Reduce inventory requirements throughout the value stream.
• Enable improved utilization of floor space.
• Increase the ability to flow small lots of material.
• Reduce transportation costs by consistent truck cube utilization.
• Reduce supplier costs through level supplier schedules.
• Reduce supplier finished goods requirements.
Elements of Effective Production Leveling

Listed below are the elements of effective production leveling:
• Collaboration between PC&L and Operations is required to establish the appropriate
level schedule before implementing the plan.
• Finished goods buffers fluctuate between calculated minimum/maximum over the
planning horizon (2-4 weeks).
• Supplying processes replenish on consumption (pull system). (For more information on
pull systems, refer to How To MM-5.)
• The schedule follows the same production pattern over a planning horizon.
• Manpower requirements, including overtime, are planned and communicated.
• Maintenance schedules are incorporated in the planning process.
• Production schedules are based on demonstrated capacity.
• Capability of monitoring production performance to the plan.
• Make-up plan rules are documented and visual on the plant floor.
Prerequisites
Prior to initiating MM-2.2 Production Leveling, it is necessary to:
• Understand the current material and information flow (including the current scheduling
method) of the operation by using value stream mapping (current and future state).
(Refer to How To IG-2.)

• Plant’s commitment to establish and maintain operating within calculated minimum

and maximum targets of finished goods and feeder operations buffer to allow for a
repeatable production pattern.
How To (Detail)
Listed below are implementation steps with detailed information:
2.2 Production Leveling

2.2.2 Identify pacemaker process (generally final assembly) to be leveled from the
future state value stream.
The pacemaker process sets the pace for all upstream processes based on how you
control production at this process. All processes after the
The goal is to have
pacemaker process should be able to flow material through
the pacemaker loop
to the final process; that is the pacemaker process supplies
as close to the front
parts FIFO or sequenced through to the end of the value
of the process as
stream. The goal is to have the pacemaker loop as close to
possible without
the front of the process as possible without disrupting the
disrupting the end
end process flow. (For more information on the pacemaker
process flow.
process, refer to the How To IG-2.)
2.2.3 Gather data.

Collect the following required data for the identified pacemaker process:
• Part numbers involved.
• Part families (share common dies, material, component parts, fixtures).
• Routings (what part numbers can be run where).
• Standard pack quantities/skid quantities.
• Demonstrated capacity by part number (not theoretical).
• Manufacturing variation (time period to time period).
• Current changeover time.
• Adjusted forecast demand due to the Quality Load Factor and scheduled
downtime. The Quality Load Factor is the amount of extra product that must be
produced to compensate for scrap downstream of the process and/or rework that
is sent through the process.
• Customer demand variability.
• Scheduled ship window frequency by part number.

49
2.2.4 Fill Out the Changeover Frequency Worksheet.

(Refer to Figure MM-2-J: Changeover Frequency Worksheet.)
1. Enter the Part Numbers in each column in Line 1.
2. Enter the Weekly Demand in Line 2.
3. Enter the Quality Load Factor % to compensate for scrap downstream and/or
rework that is sent through the process in Line 3.
4. Calculate the Adjusted Weekly Demand in Line 4 by multiplying the Weekly
Demand (Line 2) by the Quality Load Factor (Line 3).
5. Enter the Engineered Capacity (pcs/hr) as the gross rate the operation is
capable of running in Line 5.
6. Enter the Demonstrated Efficiency % by part number in Line 7.
7. Calculate the Effective Capacity (pcs/hr) in Line 7 by multiplying the
Engineered Capacity (pcs/hr) (Line 5) by the Demonstrated Efficiency
(Line 6).
8. Calculate the Required Production Hours in Line 8 by dividing the Adjusted
Weekly Demand (Line 4) by the Effective Capacity (pcs/hr) (Line 7).
Calculate the Total Required Production Hours by adding the Required
Production Hours of each part number.
9. Enter the Total Scheduled Production Hours in Line 9.
10. Enter the Scheduled Downtime (breaks, preventative maintenance, team
meeting, etc.) in Line 10.
11. Calculate the Available Changeover Time (hours) in Line 11 by taking the
Total Scheduled Production Hours (Line 9) and subtracting the Required
Production hours (Line 8) and the Scheduled Downtime (Line 10).
12. Enter the actual Average Changeover Time (in hours) in Line 12.
13. Calculate the Total Available Changeovers in Line 13 by dividing the
Available Changeover Time (Line 11) by the Average Changeover Time
(Line 12).

C h a n geo ver F req u en cy W ork sh eet
1 P a rt N u m b er A B C D TOTAL
2 W eekly D em a n d 800 300 200 150
3 Q u a lity L o a d F a cto r % 1 .1 2 1 .0 1 .0 1 .0
4 A d ju sted W eekly D em a n d 896 300 200 150

M u ltip ly L in e 2 B y L in e 3
5 E n g in eered C a p a city (p cs / h r) 60 60 60 60
6 D em o n stra ted E fficien cy % 8 4 .0 8 4 .0 8 4 .0 8 4 .0
7 E ffectiv e C a p a city (p cs / h r) 5 0 .4 5 0 .4 5 0 .4 5 0 .4
M u ltip ly L in e 5 B y L in e 6 TOTAL
8 R eq u ired P ro d u ctio n H o u rs 1 7 .8 6 .0 4 .0 3 .0 3 0 .7
L in e 4 D iv id ed B y L in e 7
9 T o ta l S ch ed u led P ro d u ctio n H o u rs 4 0 .0
10 S ch ed u led D o w n tim e (b rea ks, P M . T ea m M eetin g s, o th er) 0 .0
11 A v a ila b le C h a n g eo v er T im e (h o u rs) 9 .3
E q u als L in e 9 M in u s L in e 8 M in u s L in e 1 0
12 A v era g e C h a n g eo v er T im e (in h o u rs) 0 .2 0
13 T o ta l A v a ila b le C h a n g eo v ers 47
Figure MM-2-J: Changeover Frequency Worksheet

51
2.2.5 Develop a Manufacturing Plan.

• Determine which equipment and/or tooling each part should run through.
• Determine the best sequence for running the parts.
• Determine pattern and frequency for each part, including which shift the parts
will run in.
Pattern example:
Monday: ABABACA
Tuesday: ABABACAD
Wednesday: ABABACA
Thursday: ABABACAD
Friday: ABABACA
• Revisit the Manufacturing Plan every month, or when a new part number comes
in. Otherwise, hold the sequence.
2.2.6 Determine Cycle Stock (Running Stock) Plan by part number.

The Cycle Stock (Running Stock) is the variation in the buffer size because of the
execution of the manufacturing plan and shipping schedule. To use a worksheet
such as the one shown in Figure MM-2-K: Cycle Stock Worksheet, follow these
instructions:
• Enter the Manufacturing Plan developed for each part number as the number of
standard packs completed within each hour under the Production (P) column.
• Enter the scheduled ship windows under the Ship Windows (S) column for each
part number in standard packs.
• Alter the timing of the Manufacturing Plan against the scheduled ship windows
to minimize the inventory requirements for cycle stock under the Buffer (B)
column.
Helpful
Hint It is necessary to consider the
variation of lead time to get
product from the pacemaker to
ship when determining Cycle Stock
(Running Stock).

C y c le S to c k W o r k s h e e t fo r O N E S H IF T
Part
A B C D
N um ber
DAY H R P S B P S B P S B P S B
1 1 1 0
M 1 1 2 1 0 1 0
O 2 1 2 1 0 1 0
N 3 1 2 1 1 1 0
D 4 1 1 2 1 1 0
A 5 2 1 2 1 0 0
Y 6 2 2 2 2 0 0
7 2 1 1 1 1 0
8 1 1 2 1 1 2 0
T 1 1 3 1 0 2 0
U 2 2 1 1 1 2 0
E 3 1 2 1 2 0
S 4 1 1 2 1 2 2 0
D 5 2 2 1 2 1 0
A 6 1 2 1 2 1 0
Y 7 1 1 1 1 2 2
8 1 0 1 1 1 3
W 1 1 1 1 0 1 3
E 2 1 2 0 0 1 3
D 3 1 1 1 1 1 3 0
4 1 1 1 1 1 0
5 1 1 2 1 0 0
6 2 2 1 2 0 0
7 1 1 1 1 1 0
8 2 1 2 1 1 0
T 1 1 3 1 0 1 0
H 2 2 1 1 1 1 0
U 3 1 2 1 1 0
R 4 1 1 2 1 2 1 0
S 5 2 2 1 1 1 0
6 2 0 2 1 2 0
7 1 1 1 1 2 1 1
8 1 0 1 2 1 2
F 1 1 1 1 0 2 2
R 2 1 2 0 0 2 2
I 3 1 1 1 1 2 2 0
D 4 1 0 1 2 2 0
A 5 1 1 2 2 0 0
Y 6 1 2 0 2 1 1 0
7 1 1 1 1 1 0
8 1 1 1 1 1 0
Figure MM-2-K: Cycle Stock Worksheet

53
2.2.7 Develop a buffer for each part number.

(Refer to Figure MM-2-L: Design of a Buffer.)
Temporary Stock is a buffer that is built and maintained due to a temporary
condition such as engineering change, seasonal demand, part reallocation, etc.
Cycle Stock (Running Stock) is the variation in the buffer size because of the
execution of the manufacturing plan and shipping schedule.
Manufacturing and Demand Variation Stock is the buffer needed for normal
variation in manufacturing daily production and normal variation in customer daily
ship windows.
Emergency Stock is the buffer that is maintained due to unplanned stock outages,
tooling shortages, equipment shortages or downtime and unplanned downtime
reasons that are not captured in the Manufacturing Variation Stock.
MAX
Cycle
Stock
Demand
Variation
MIN
Manufacturing
Variation
If missed production
Temporary Helpful (manufacturing
Stock Hint variation) cannot be
made up, it needs to be
covered in a buffer. If
Emergency missed production can
Stock be recovered, it does
not need to be covered
in a buffer.
Figure MM-2-L: Design of a Buffer

2.2.8 Develop a load-leveling schedule.

There are many methods to communicate a level schedule. A A level schedule
level schedule must contain model, mix and sequence. must contain
A heijunka schedule is a useful tool for communicating level model, mix and
schedule requirements to the pacemaker process. This tool sequence.
provides a time-based visual control that shows sequence
and quantity of scheduled build and provides production status feedback whether
the pacemaker process is ahead/on/behind schedule, in real time, throughout the
day.
PC&L develops the line schedule based on customer demand. PC&L loads the
heijunka schedule according to the line schedule with pull cards according to the
level schedule plan in the proper volume, mix and sequence.
Figure MM-2-M: Micro Leveling Example provides an example of a heijunka
box. The part numbers are along the left and the time (pitch) is across the top. Cards
tell the operation the model, mix and sequence of production in which to run. The
status to time allows for a visual tool communicating production performance to
plan.
Build order sequenced and timed to match

standard pack (pitch).
6:36 7:12 7:48 8:24 9:00 9:36 10:12 10:48 11:24 12:00 12:36 1:12 1:48 2:00
part number
One row per
Part
A
Part
B
Part
C
Part
D
Standard Pack = 30
Figure MM-2-M: Micro Leveling Example

55
Listed below are some of the basic rules of operating a heijunka schedule:
• Manufacturing builds to the heijunka box pattern (volume, mix and sequence).
• If production cannot build required quantity of any part, the next part number is
built in its entirety provided there is adequate buffer to the customer of the pull
cards missed.
• Production attempts to build any missed pull cards from previously scheduled
part numbers before moving forward in the sequence.
• After making up missed pull cards, revert to the original sequence (build the
next part in the heijunka box).
• If there are any missed pull cards at the end of the shift or day, the following
shift or day resumes building missed pull cards before producing pull cards for
the new shift or day.
• Address reasons for missing pull cards on a production countermeasure board.
• Manufacturing attempts to make up missed pull cards at the earliest opportunity
(by the end of the shift, end of the day, next day) to avoid weekend overtime.
2.2.9 Develop a plan to handle the exceptions and make continuous improvement.
2.2.10 Develop the schedule attainment metric.

The schedule attainment metric is a measure of an operation’s ability to develop
and execute a production plan. The metric is used to measure PC&L’s ability to
create an effective production schedule and manufacturing's ability to operate to
that schedule. (For more information on the schedule attainment metric, refer to
IG Key Metrics.)
• Material Movement Standards (Ideal Material Movement in Plant), Delphi Lean
Material Flow Circle of Colleagues.
• Quality Network (QN 1101-1102) Level Scheduling.

MM-3 Designated Storage
Overview
MM-3 DESIGNATED STORAGE

Designated Storage is an area utilized to store material (purchased, in-process and finished, both
hand carriable and bulk) or empty returnable containers received from customers and/or staged
for shipment to suppliers. This is a two-step process that includes Supermarket/Bulk Storage and
Empty Container Storage.
• Supermarket/Bulk Storage is a designated area utilized to store material inventory
(purchased, in-process and finished, both hand carriable and bulk).
• Empty Container Storage is a designated area to store empty returnable containers
received from customers and/or staged for shipment to suppliers. It is the supermarket
for empty containers.
The subsections MM-3.1 Supermarket/Bulk and MM-3.2 Empty Container Storage include
objectives, lean process indicators, prerequisites and How To (Detail) for each of these
How To's.
3.1 Supermarket/Bulk Storage.

3.1.1 Develop a cross-functional team (Mfg., PC&L, IE).
3.1.2 Determine part numbers to be stored in supermarket.
3.1.3 Determine information from the Plan for Every Part (PFEP).
3.1.4 Calculate buffer requirements.
3.1.5 Size the supermarket.
3.1.5.1 Establish the maximum number of containers to be stored in the
supermarket for each part number.
3.1.5.2 Establish a supermarket/bulk minimum inventory level for each part
number.
3.1.5.3 Determine the number of containers per row.
3.1.5.4 Determine the number of rows required per part number.
3.1.5.5 Calculate linear footage of storage rack or bulk lane (width or pick-face).
3.1.6 Calculate the actual floor space required.
3.1.7 Refer to site planning process to identify locations for supermarkets.
3.1.8 Work with plant engineers to develop the supermarket area including aisles,
predetermined traffic flow patterns, etc. considering safety and ergonomic issues.
3.1.9 Draw a layout of roller racks or lanes with part numbers mirroring current or near
future delivery routes.
3.1.10 Procure racks.
3.1.11 Clear area designated for supermarket.
3.1.12 Develop and implement visual controls.
3.1.13 Load existing material into the supermarket.
3.1.14 Establish a minimum stock reaction process.
3.1.15 Establish an overflow stock process.
3.1.16 Establish Standardized Work for the supermarket attendant.
3.1.17 Review the general considerations for Supermarkets, Pull Systems and Delivery
Routes (Refer to Appendix A).

57
Overview
3.1.18 Establish a process to identify problems in the process and allow continuous
improvement.
3.1.19 Train employees on the advantages of the process and reasons to implement.
3.1.20 Implement the Supermarket.
3.1.21 Verify all data and update PFEP with any changes.
3.2 Empty Container Storage.
3.2.2 Review the Returnable Container Process Flowchart.
3.2.3 Determine the number of parts that are in returnable containers from the PFEP.
3.2.4 Determine information from the PFEP.
3.2.5 Size the empty container storage area to determine space requirements.
3.2.5.1 Identify all supplier (customer) returnable containers.
3.2.5.2 Identify all returnable container types.
3.2.5.3 Determine the number of containers used daily for each supplier/container
(customer/container) combination.
3.2.5.4 Determine the best method of handling the accumulation of containers
based on space constraints (e.g., roller racks, individual pallet/special
container footprint, etc.).
3.2.5.5 For hand-carriable containers, separate high runners from the low runners
based on plant parameters.
3.2.5.6 Determine stack height for palletized and bulk containers and allocate
sufficient space to handle daily requirements (complying with local
restrictions, safety and ergonomic concerns).
3.2.5.7 If using roller racks, refer to How To MM-3.1 Supermarket/Bulk Storage
for roller rack sizing information.
3.2.5.8 Calculate actual floor space required.
3.2.6 Refer to the site planning process to identify locations for empty container storage
area.
3.2.7 Work with plant engineers to develop the empty container storage area.
3.2.8 Clear the area designated for empty container storage.
3.2.10 Load existing returnable containers into the area.
3.2.11 Establish a container shortage reaction process for customer containers.
improvement.

MM-3.1 Supermarket/Bulk Storage
MM-3.1 SUPERMARKET/BULK STORAGE

Supermarket/Bulk Storage is a designated area utilized to store material inventory (purchased,
in-process and finished, both hand carriable and bulk). Figure MM-3-A: Supermarket/Bulk
Storage Layout Pictorial Representation displays an example of a Supermarket/Bulk Storage
layout.
ROW
D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
ROW
D Start at
Traffic Flow
ROW 1 2 3
Picking Aisle
4 5 6 7 8 9 10 11
Picking Aisle
12 13 14 15 16 17 18 ROW Rack 1 and
C C number
ROW
B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
ROW
B consecutively
ROW ROW
A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 A
Stocking Aisle Stocking Aisle Column
Column T65
T64
Hand carriable Bulk

AC 53
STORE STORE STORE

Part #__________________________ Part #__________________________ Part #_______________ ___________
Descri ption_____________________ Descri ption_____________________ Descri ption_____________________
Std. Pack_______________________ Std. Pack_______________________ Std. Pack_______________________
SUPERMARKET
Min____________ Max____________ Min____________ Max____________ Min____________ Max____________
Store Loc_______ Use Lo c________ Store Loc_______ Use Lo c________ Store Loc_______ Use Lo c________
Row
Suppli er ________________________ Suppli er ________________________ Suppli er ________________________
Deliv er y Date - M - T - W - T - F - S Deliv er y Dat e - M - T -W - T - F -S Deliv er y Dat e -M - T -W -T -F -S
Time___________________________ Time___________________________ Time___________________________
C C
2 B
B B
Supermarket address Part number Pack A A
T64 - A1 - A - 05 22152297 60 1 2 3
Name
Market Attendant
P90 Drum brake Adjusting screw
MIN Supplier MAX picks carton based
2 XYD Ind. 7 on Pull Card Order
Rack T64 T64

Label Row A1 A2
A 1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18
C C
19 20 21 23 24 25 26 27 28
B2 B 29 30 31
A A
1 2 3 4 5
Figure
Figure 3-A: Supermarket/Bulk
MM-3-A: Supermarket/Bulk Storage
Storage Layout
Layout Pictorial
Pictorial Representation
Representation
Objectives
Listed below are the objectives of MM-3.1 Supermarket/Bulk Storage:
• Organize and control inventory levels.
− Support flow.
− Minimize inventory and space.
− Support First In/First Out (FIFO).
• Support implementation of a standardized delivery process.
• Provide workplace organization for material. (For more information on Visual Controls
and Addressing, refer to How To’s WO-2 and WO-3.)
− Have a place for everything. − Improve housekeeping.
− Reduce non-value-added search and walk time. − Facilitate visual management.
− Minimize delivery and put away time.
59

Listed below are the lean process indicators for MM-3.1 Supermarket/Bulk Storage:
• Number of parts shortages.
• Number of parts in minimum condition.
• Number of parts in overflow condition.
• Visual check for FIFO in supermarkets (multi-lane products).
Elements of an Effective Supermarket

Listed below are general guidelines for an effective supermarket:
• Storage area is large enough to store and easily access maximum banks of material
while accommodating First In/First Out (FIFO) and minimum/maximum management.
• Number of material supermarket areas is minimized.
• Location of supermarket(s) is consistent with the material master plan (flow is
standardized from storage to point-of-use).
• Each part number has one primary storage location.
• Part labels displayed at each storage location:
− Include current information (minimum requirements, part number, part description,
using location, delivery location, supplier and pack).
− Identify each location (or lane) of stored material.
− Are easy to read and maintained from the aisle.
− Identify minimum/maximum quantities.
− Identify whether the part is common (used on multiple parts) or unique (used on a
single part).
• Aisles:
− Are clearly identified for storage and retrieval.
− Provide for smooth traffic flow for all users (e.g., one way aisles, dedicated to one
route, etc.).
• Minimum/maximum quantities are maintained and a process is in place to manage
exceptions.
• Overflow areas:
− Are minimized.
− Are dedicated and clearly identified.
− Follow process to maintain FIFO flow.
• FIFO controls are implemented, maintained and used (multiple lanes of the same part
number use visual controls so parts are always selected from the oldest lane).
• Material is delivered from storage areas to operations using the most appropriate pull
signals.
• Returnable and disposable container, refuse and dunnage areas are:
− Located in relationship to the delivery path to standardize the workflow.
− Arranged to permit flow-through processing.
− Identified with appropriate visual controls.
• A written process is in place to handle out-of-stock, below minimum, over maximum
and overflow conditions.
Refer to Figure MM-3-B: Guidelines for Hand Carribles and Bulk Storage Area for
additional information.
Listed below are guidelines for hand carriables:

• Small containers:
− Are removed from pallets and stored individually in assigned rack locations.
− Have tops removed prior to placing containers on rack, except where contamination conditions prohibit.
− Are placed in racks with labels facing pick-side of aisle.
• Roller rack presentation is used unless the size, weight, usage rate, or packaging dictates a more efficient or
ergonomically effective alternative (e.g., warehouse rack, floor stand, etc.).
• All shelf heights must meet ergonomic guidelines. Shelf assignment is based on container weight and size, with
heaviest containers assigned to shelves at waist level.
• The supermarket is organized by route to simplify the picking process and then by supplier to simplify the put
away.
• Only high volume (more than two pallets per day of containers with small standard packs) purchased parts are
stored on pallets. To minimize ergonomic stressors, pallets are displayed on rollers with access to three sides of
the pallet, at the end of aisles, or on rotating devices to give the picker access to all containers on the pallet
without excessive bending or reach.
Listed below are guidelines for bulk storage area:
• Single lane for each part.
• The area is arranged to minimize delivery distance to the point-of-use and to provide access to the parts from
the store and the retrieve sides.
• Bulk signs hang over each part identifying the part number and the minimum/maximum quantities.
• Allowable stack quantities are noted on the bulk signs and maximum safe stack heights marked on columns in
the area.
• Follows the address scheme from How To WO-3 Address System.
Figure MM-3-B: Guidelines for Hand Carribles and Bulk Storage Area

61
Prerequisites
Prior to implementing MM-3.1 Supermarket/Bulk Storage, complete the following How To’s:
• IG-2 Site Plan.
• MM-1 Plan for Every Part.
• MM-2.2 Production Leveling.
• WO-3 Address System.
In addition to completing the How To's listed above, leadership must support and demonstrate a
commitment to the process by providing the necessary material/equipment, people and/or
financial resources.
How To (Detail)
Listed below is detailed information on how to implement MM-3-1 Supermarket/Bulk Storage:
3.1 Supermarket/Bulk Storage

3.1.2 Determine part numbers to be stored in supermarket.
3.1.3 Determine information from the Plan for Every Part (PFEP).
Determine the following information from the PFEP:
• Daily volume.
• Ship/delivery frequency.
• Standard pack quantity.
• Container measurements (Length x Width x Height).
• Orientation of container in supermarket (Length or Width).
3.1.4 Calculate buffer requirements.

Calculate buffer requirements based on the following:
• Supplier capability.
• Variability of schedules.
• Variability of transit times.
• Lead time from receipt to put away (include receiving inspection allowance).
• Scrap rates.
• Ship frequency.
3.1.5 Size the Supermarket.
3.1.5.1 Establish the maximum number of containers to be stored in the

supermarket for each part number:
Maximum number of containers to be stored in the supermarket by part number

calculation:
Max. Daily Requirements * Number of working days per week
= + Buffer
Number of shipments or deliveries per week * Standard Pack Quantity
3.1.5.2 Establish a supermarket/bulk minimum inventory level for each part

number.
Base minimum inventory on lead time to replenish by premium freight
(minimum must be at least one container to differentiate between
minimum condition and out-of-stock condition).
3.1.5.3 Determine the number of containers per row.
Number of containers per row calculation:

= Rack or Lane Depth * Stack Height
Orientation Depth
Example 1 (Hand Carriable):

Rack is 10 feet deep.
Each container is oriented one foot in depth.
Therefore, the number of containers per row equals 10.
Example 2 (Bulk):
Lane is 10 feet deep.
Each container is oriented 3 feet in depth.
Max stack height is 3.
Therefore, the number of containers per row equals 9.

63
3.1.5.4 Determine the number of rows required per part number:
Number of rows required per part number calculation:

= Maximum Number of Containers
Number of Containers per Row
3.1.5.5 Calculate linear footage of storage rack or bulk lane (width or pick-
face).
Linear footage of storage rack or bulk lane (width or pick-face) calculation:
= Σ ((Number of Rows per Individual P/N) * (P/N Orientation Width))
Note: Where racks are used, add footage for end posts and lane dividers.
Consider adding 10% footage per rack for future growth or part/route
adjustment.
3.1.6 Calculate the actual floor space required.
Actual floor space required calculation:

= Linear footage * Rack or lane width
3.1.7 Refer to site planning process to identify locations for supermarkets.
• Installing a supermarket may require the rearrangement of floor space.

• Supermarkets are best arranged by internal delivery route order by supplier.
• Establish only one storage location for each part number.
Helpful • To maintain FIFO, design supermarkets that are loaded from the back and
picked from the front.
Hints
• Roller racks may be constructed and utilized to allow gravity feed of
containers to the route drivers and ensure FIFO.
• Consult plant engineering, safety and ergonomics to ensure load and unload
height and weight meet prescribed ergonomic and safety guidelines.
• Minimize the number of raw and finished material supermarkets; they need to
be in-line with the docks.
• In-process supermarkets need to be in-line with product flow and close to the
supplying area.
• Common parts are best located at the end of supermarket aisles for ease of
access.

3.1.8 Work with plant engineers to develop the supermarket area including aisles,
predetermined traffic flow patterns, etc. considering safety and ergonomic
issues.
3.1.9 Draw a layout of roller racks or lanes with part numbers mirroring current or
near future delivery routes.
3.1.10 Procure racks.
3.1.11 Clear area designated for supermarket.

• Clean floor.
• Tape or paint lines that establish lanes.
• Seal floor if necessary.

Refer to How to WO-2 Visual Controls and How to WO-3 Address System. An
effective supermarket includes:
• Area identification.
• Rack or Lane identification (Rack Letter, Section ID, Row ID).
• Part number information label (part number, description, min./max. line
address, supermarket address, supplier(s) name).
Note: Label is applied to both the load-face and pick-face of row.
Helpful • Supermarket visual controls must be simple to maintain.

Hints Use formats where changes can be made quickly.
• Supermarket visual controls must be easy to read. Use
print or font sizes that are large enough to read from
the aisle or from the floor.
• Properly maintaining up-to-date addressing is critical to
the supermarket success.
Below minimum and

Helpful out of stock alarms
3.1.13 Load existing material into the Hint must be responded
supermarket. to immediately to
ensure that
3.1.14 Establish a minimum stock reaction process. production is not
Establish a process that: affected by the
• Flags a minimum stock condition. shortage.

65
• Generates follow-up with corrective actions developed using a problem solving

process.
• Ensures no interruption in production.
• Sets off an alarm if stock is below minimum or is depleted.
3.1.15 Establish an overflow stock process that:

• Flags an overstock condition.
• Ensures FIFO.
Helpful
Hint In plants with limited floor space where
bulk storage areas are against walls,
there must be a disciplined process and
schedule to rotate stock on a regular
basis.
3.1.16 Establish Standardized Work for the supermarket attendant.
3.1.17 Review the general considerations for Supermarkets, Pull Systems and
Delivery Routes. (Refer to Appendix A.)
improvement.
3.1.20 Implement the Supermarket.
• Delphi Automotive Ergonomic Guidelines Manual.

MM-3.2 Empty Container Storage
MM-3.2 EMPTY CONTAINER STORAGE

Empty Container Storage is a designated area to store empty returnable containers received
from customers and/or staged for shipment to suppliers. It is the supermarket for empty
containers.
Objectives
Listed below are the objectives of MM-3.2 Empty Container Storage:
• Organize and control empty containers.
− Support flow.
− Minimize container inventory and space.
• Support implementation of a standardized container return process.
• Support timely return of containers.
• Provide workplace organization for empty containers.
− A place for everything.
− Facilitate visual management.
− Improve housekeeping.

The lean process indicator for MM-3.2 Empty Container Storage is a visual check of the empty
container storage area for overall Workplace Organization.
Figure MM-3-C: Issues/Advice - Empty Container Storage provides helpful information for
successful implementation.

67
Issues/Advice
Empty Container Storage
• Everyone should understand that the empty returnable container is as important to the
supplier as parts are to the customer. Every step in the handling process should prepare the
containers for the next user.
• The process works best when used in conjunction with supplier-dedicated containers.
• Do not use shipping/delivery containers for:
− Maintenance storage.
− Rubbish, scrap, or recycle collection.
− Salvage or repair operation storage.
− Part or container (ergonomic) stands.
− Operator stools, chairs, lunch boxes, glove containers, etc.
• Outbound container return shipping frequency should match inbound parts receiving
frequency.
Figure MM-3-C: Issues/Advice - Empty Container Storage
Prerequisites
Prior to implementing MM-3.2 Empty Container Storage, complete the following How To’s:
• IG-2 Site Plan.
• MM-1 Plan for Every Part.
• MM-2.2 Scheduled Window Shipping
• WO-3 Address System.

How To (Detail)
Listed below is detailed information on how to implement MM-3.2 Empty Container Storage:
3.2 Empty Container Storage

3.2.2 Review the Returnable Container Process Flowchart.

Review the flowchart (Figure MM-3-D: Returnable Container Process) to
understand how Containerization (MM-4.1), Empty Container Storage (MM-3.2)
and Container Return Process (MM-7.2) interrelate.
3.2.3 Determine the number of parts that are in returnable containers from the
PFEP.
Include purchased parts, in-process material and finished goods.
3.2.4 Determine the following information from the PFEP:

• Daily volume per container.
• Number of containers per day.
• Standard pack quantity.
• Ship/delivery frequency.
• Container measurements (Length x Width x Height).
• Number of containers per pallet.
3.2.5 Size the empty container storage area to determine space requirements.
3.2.5.1 Identify all supplier (customer) returnable containers.
3.2.5.2 Identify all returnable container types.
3.2.5.3 Determine the number of containers used daily for each

supplier/container (customer/container) combination.
3.2.5.4 Determine the best method of handling the accumulation of

containers based on space constraints (e.g., roller racks, individual
pallet/special container footprint, etc.).

69
Containerization
MM-4-1
Identify part numbers being

converted to returnables and
specific containers selected
Reference Site Plan Layout for

Supermarket and Empty
Container Storage location plans
Hand- Identify Hand-carryable Container

Identify Bulk Container Storage
Bulk Bulk or Carryable
(sort) Area adjacent to Bulk Storage (sort) Area adjacent to
Hand- Hand-carryable Supermarket
Supermarket (Supermarkets,
Carryable (Supermarkets, MM-3-1)
MM-3-1)
MM-3-2
Free-up floorspace through:

Sufficient No
process changes, increase
Space ship frequency, reducing
Available? inventory, etc.
Yes
Develop new layout to

Yes
accommodate empty Sufficient
returnable containers Space
Available?
Develop Container
No
Return Process
Examine off-site
rd
alternatives (eg. 3 party
Develop implementation sort/return)
plan for the plant
Determine container
loop size (number of
containers required)
Container Return Process
Purchase containers and

double badge (supplier,
receiving plant)
MM-7-2
Obtain supplier sign-off

(Bailment)
Communicate start-up
date to supplier, carrier
rd
(3 party)
Develop container return

manifest and people
focused practices
Begin receiving in
returnables
Figure MM-3-D: Returnable Container Process

3.2.5.5 For hand-carriable containers, separate high runners from the low
runners based on plant parameters.
For example: “high runners are greater than or equal to an average of a full
pallet per ship frequency."
Place high runners on pallets at a designated storage location.
Accumulate low runners in roller racks for space consideration.
3.2.5.6 Determine stack height for palletized and bulk containers and allocate
sufficient space to handle daily requirements (complying with local
restrictions, safety and ergonomic concerns).
Number of Pallet Footprints calculation:

Maximum number of containers
=
Containers per pallet x Stack height
Note: Containers/pallet = 1 for bulk
3.2.5.7 If using roller racks, refer to How To MM-3.1 Supermarket/Bulk

Storage for roller rack sizing information.
3.2.5.8 Calculate actual floor space required.

Add space for all containers, racks and aisle space.
Helpful • Installing a returnable container storage

Hint area may require the rearrangement of floor
space.
• Plant engineering, safety and ergonomics
should be consulted to ensure load and unload
height and weight meet prescribed
ergonomic and safety guidelines.
3.2.6 Refer to the site planning process to identify locations for empty container
storage area.
Utilize existing internal delivery routes (refer to How To MM-6 Internal Delivery
Routes) and drivers for collection of empty containers and dunnage in order to:
• Provide more frequent removal from production envelope.
• Reduce in-plant traffic flow.
• Utilize return trip of route drivers and equipment.

71
3.2.7 Work with plant engineers to develop the empty container storage area.
This includes aisles, predetermined traffic flow patterns, etc. Consider safety and
ergonomic issues.
3.2.8 Clear the area designated for empty container storage.

• Clean floor.
• Tape or Paint Lines that establish pallet footprints.
• Seal floor if necessary.

• Provide addresses for the empty container storage areas.
• Place a storage area sign directly over respective supplier/container that is used
to identify where to place empties and when to cap off a pallet.
• For each part number, establish a minimum customer container inventory level
that is based on lead time to replenish.
Refer to How To WO-3 Address System for more information on developing and
implementing visual controls.
3.2.10 Load existing returnable containers into the area.
3.2.11 Establish a container shortage reaction process for customer containers.

Establish a process that:
• Flags a minimum container condition.
• Generates follow-up with corrective actions developed using a problem solving
process.
• Ensures no interruption in production.
improvement.


73

MM-4 Container Right Sizing &
Supporting the Operator
Overview
MM-4 CONTAINER RIGHT SIZING & SUPPORTING THE OPERATOR

Container Right Sizing & Supporting the Operator is the process of packaging and grouping
parts to best support the operator and meet the needs of the customer. This process includes the
following:
• Containerization is the process of packaging parts in the smallest lot possible resulting
in the presentation of a quality part to eliminate waste of motion for the manufacturing
operator.
• Repacking is the process of transferring parts from one container into a more
appropriate size or type of container to satisfy the needs of the next using customer.
This is often done as an interim solution to containerization.
• Kitting is the process of grouping parts into sets that are used together in a downstream
operation.
The subsections MM-4.1 Containerization, MM-4.2 Repacking and MM-4.3 Kitting include
objectives, elements of effective implementation, lean process indicators, prerequisites, How To
(Detail) and additional information for each of these How To's.
How To (Summary)
Listed below is a summary of the implementation steps for MM-4 Container Right Sizing &
Supporting the Operator:
4.1 Containerization.
4.1.1 Develop a cross-functional team (Mfg. PC&L, IE, ME, Purchasing).
4.1.2 Review the Returnable Container Process flowchart.
4.1.3 Review part presentation requirements from the perspective of the operator.
4.1.4 Define container size and standard pack quantity.
4.1.5 Determine if the container change will be returnable or expendable based on a
cost/benefit analysis through the entire value stream. Conduct Total Cost Model
Analysis as required (see DBS procedures).
4.1.6 Make provisions for returnable containers.
4.1.6.1 Define the container return process.
4.1.6.2 Determine the number of containers required based on loop size for the
planned material delivery process.
4.1.6.3 Secure funding and acquire the proper number of containers.
4.1.6.4 Badge containers (supplier, receiving plant).
4.1.6.5 Contact supplier to communicate the plan for the returnable container
implementation.
4.1.7 Make provisions for expendable containers.
4.1.8 Send out an implementation letter with the approximate start-up date.
4.1.9 Supplier notifies the plant when containers are received; supplier and plant agree on
an exact date for the Product and Process Approval Plan (PPAP) and start-up.
4.1.10 Notify all involved parties of the implementation date.
75
MM-4 Container Right Sizing &
Overview
4.1.11 Update supermarkets and empty container storage areas to accommodate new
containers, including all visual controls and addressing.
4.1.12 Update manufacturing workstations to accommodate new containers.
4.1.13 Update Standardized Work for affected jobs.
4.1.14 Implement new containers.
4.1.15 Update the Plan for Every Part (PFEP) with new container and standard pack
information.
4.2 Repacking.
4.2.2 Determine part numbers to be repacked.
4.2.3 Determine the Daily Volume and Route Frequency from the Plan for Every Part
(PFEP).
4.2.4 Determine pack size and standard pack quantity. Utilize common lot strategy.
4.2.5 Provide the proper number of containers based on Production Pull calculations and
the repack lead-time. (Refer to MM-5 Pull Systems.)
4.2.6 Define the repack area.
4.2.7 Determine method for repack and develop Standardized Work.
4.2.8 Define labor requirements.
4.2.9 Train employees using Standardized Work documentation.
4.2.10 Implement repack.
4.2.11 Continue pursuing containerization strategy to eliminate repack.
4.3 Kitting.
4.3.2 Evaluate part presentation requirements and determine part numbers to be kitted.
4.3.3 Review information from the Plan for Every Part (PFEP).
4.3.4 Where possible, have supplier create the kit.
4.3.5 Define the kitting process.
4.3.5.1 Determine common lot quantity for parts to be kitted.
4.3.5.2 Establish part orientation and presentation to the operator utilizing
operator input.
4.3.5.3 Design kitting cart/container.
4.3.5.4 Design label.
4.3.6 Integrate kits into delivery route.
4.3.7 Determine the proper number of kit containers to support the loop.
4.3.8 Design kitting area layout and Standardized Work for loading kitting container.
4.3.9 Adjust the Standardized Work for delivery and production operators.
4.3.10 Measure total work content and define labor requirements.
4.3.11 Train kitting, route and production employees using Standardized Work.
4.3.12 Adjust manufacturing area layout and workplace organization/visual controls to
accommodate footprints for kitting.
4.3.13 After the operation is ready to accept kitting container and kitting cell is capable,
implement route and kitting.
4.3.14 Update the PFEP if required.
4.3.15 Continuously evaluate the need to kit and eliminate or move up the value stream.

MM-4 Container Right Sizing and
MM-4.1 Containerization
MM-4.1 CONTAINERIZATION
Containerization is the process of packaging parts in the smallest The goal is to have the
lot possible resulting in the presentation of a quality part to supplier ship in a
eliminate waste of motion for the manufacturing operator. As container that can be
depicted in Figure MM-4-A: Containerization Transition, the used as part of the
goal is to have the supplier ship in a container that can be used as parts presentation
part of the parts presentation device. device.
Large
Container
Large Bulk Hand Carriable Containers Integral

Container Container to Parts Presentation
Figure MM-4-A: Containerization Transition
Objectives
Listed below are the objectives of MM-4.1 Containerization:
• Eliminate non-value-added, non-cyclic work from the operator.
• Enable Standardized Work for the material movement process.
• Follow ergonomics guidelines during handling during shipping, storage, and delivery.
(See Delphi Manufacturing Engineering Guidelines and Delphi Ergonomics Worksheet
for Container Design at
http://apollo.delphiauto.net/health_safety/ergonomics/design-in.htm.)
• Ensure part quality.
• Support the operator in parts presentation, follow ergonomics guidelines. (See Delphi
Manufacturing Engineering Guidelines and Delphi Ergonomics Worksheet for
Container Design at
http://apollo.delphiauto.net/health_safety/ergonomics/design-in.htm.)
• Enable inventory reduction through small lot strategy.

77

Listed below are the lean process indicators for MM-4.1 Containerization:
• The amount of non-value-added time attributed to packaging is reducing.
• The number of quality problems attributed to packaging is zero.
• The % of hand-carriable containers utilized is increasing.
• The % of returnable containers implemented versus identified is increasing.
• The % of parts shipped in the correct right-sized container at start of production is
increasing.
• The % of parts shipped in Delphi standard containers is increasing.
Elements of Effective Implementation of Containerization

Listed below are elements of effective implementation of MM-4.1 Containerization:
• Container.
− Size is optimized for operator work envelope.
− Presents parts to the operator in a damage-free condition.
− Minimizes ergonomic stress and time to access parts from first to last.
− Design minimizes dunnage and dunnage handling.
− Minimizes preparation time (e.g., removal of banding, wrapping and lids).
− Standard pack quantity and dimensions are the same for returnable and expendable,
dimensions for back-up expendable are same as returnable.
− Identified with shipping label in compliance with the Delphi Container Label
Requirements Standard.
• Standard pack quantity provides for daily or more frequent delivery and is optimized
for common lots supporting frequent delivery routes. (For more information on
common lots, refer to Figure MM-4-E: Common Lot Strategy Example for a Cell in
the Attachments section.)
− Bulk containers are minimized, but if used, are targeted for four hours or less.
− Containers are sized to maximize cube utilization yet not compromise frequent
route deliveries.
• Delphi common standard containers are used.
• Manually handled containers and dunnage meet ergonomic guidelines (Refer to Delphi
Manufacturing Engineering Ergonomics Guidelines and Delphi Ergonomics Worksheet
for Container Design http://apollo.delphiauto.net/health_safety/ergonomics/design-
in.htm.)
• Material is shipped in production containers (including PPAP and build out).

• Container requirements are identified prior to sourcing business and confirmed by the
supplier before sourcing is complete.
• A process is in place to manage returnable containers and to ensure that suppliers send
parts in the required containers.
• Approved container plan is updated in the Plan for Every Part database.
• A recommended standard container listing is developed for each common purchased
part.
Figure MM-4-B: Issues/Advice - Containerization provides helpful information for successful

implementation of Containerization Plans.
Issues/Advice
Containerization
• Ensure that product quality is maintained when changing packaging design.
• Sub-optimization can occur when only packaging and transportation issues are considered in
packaging decisions.
• Consider ergonomics for all aspects of the pipeline (loading, movement and unloading).
• Keep dunnage to a minimum. Use dividers, compartments, etc. only when justified (to error
proof quantities, maintain quality, or assist in presenting parts to operator in an appropriate
manner).
• Align container design with logistics plan.
• It is best to have one standard pack quantity per part number that best meets the needs of
all customers, recognizing different customers will have different daily rates.
• It is best to have a single container for work-in-process through finished product.
• Do not wait for preferred containers to start implementing other material movement
concepts. Consider utilizing repacking, kitting, right sized expendable containers, etc. as
short-term solutions while implementing the containerization strategy. With timing in mind, it
is much easier to implement right sized packaging during phase 0-2 of the Product
Development Process.
• Work with the MSD team to identify the right container that supports the man, machine and
material balance of the manufacturing system. Communicate the requirements as part of the
sourcing requirements during phase 0-2 of the Product Development Process.
• The investment required for returnable containers should be identified in the appropriations
request for a new product program.
• Repacking should be an interim strategy until the right container can be received from the
customer.
Figure MM-4-B: Issues/Advice - Containerization

79
Prerequisites
Prior to implementing MM-4.1 Containerization, complete the following:
• Define workstation parts presentation requirements (Flow MSD, Workplace
Organization).
Helpful Do not wait for preferred containers to start implementing other

Hint material movement concepts. Consider utilizing repacking, kitting,
right-sized expendable containers, etc. as short-term solutions while
implementing the containerization strategy. With timing in mind, it is
much easier to implement right sized packaging during phase 0-2 of
the Product Development Process.
How To (Detail)
Listed below are the implementation steps with detailed information:
4.1 Containerization.
4.1.1 Develop a cross-functional team (Mfg. PC&L, IE, ME, Purchasing).

Refer to Figure MM-4-C: Returnable Container Process. Review the chart to
understand how Containerization (MM-4.1), Empty Container Storage (MM-3.2)
4.1.3 Review part presentation requirements from the perspective of the operator.
4.1.4 Define container size and standard pack quantity.

Refer to Figure MM-4-D: Decision Process for Container Right Sizing and
Material Movement Standards for Packaging.

Containerization Returnable Container Process

MM-4-1



MM-3-1)
MM-3-2

Sufficient No
Yes

Yes
Available?
Develop Container
No
Return Process
Examine off-site
rd
plan for the plant
Determine container

receiving plant)
MM-7-2

(Bailment)
rd
(3 party)

manifest and people
focused practices
Begin receiving in
returnables
Figure MM-4-C: Returnable Container Process

81
Decision Process for Container Right Sizing and Material Movement Standards for Packaging
Review the parts presentation

requirements from the perspective of A
the operator.
No
Does the part weigh
2 lbs. (1 kg) or less? B
Yes
Determine whether part should be bulk Select manually handled container size
D packed or use mechanical assistance from standard container menu, C
(hoist, etc.) where possible
E
Is it possible
to orient the parts using the container
as part of the presentation
device?
Yes No
F
If error-proofing
of parts is needed, can process process
accommodate containers as part of the
presentation device?
Yes Develop special container or load

material from container into an on-line
Parts will be presented to the operator parts presentation device that orients parts,
in the container from the supplier G presents as a single piece or in specific H
quantities, incorporates part error-proofing ,
etc. (parts presentation device is on-line
container)
Determine standard pack quantity using
common lot strategy
Note: Max weight of parts and I
containers to be determined by
ergonomic guidelines.
Yes
Is number of containers
per 8 hour shift > 50? J
No
Determine special requirements:

Security requirements
Temperature (hot of cold)
Are parts oily
Do parts need to be vented
Errorproofing for similar parts
(different colors, labels, etc.) K
Do parts use dividers
Static protection-electrical properties
Chemical properties or parts
Determine space requirements for

material presentation in the work area L
Determine economics of returnable

versus expendable containers M
Verify ergonomics and part

presentation of selected container with N
operators for approval & feedback
Container selected
Figure MM-4-D: Decision Process for Container Right Sizing and Material Movement Standards for Packaging
(Refer to the key on the following page.)

Decision Process for Container Right Sizing and Material Movement Standards for Packaging Key:
A. Review part presentation requirements from operator’s perspective. If parts are to be fed into a machine,
consider material handler interface with machine.
B. Determine weight of part being handled. Part weight is a major factor when determining standard pack
quantities. In general, if the part weight is two pounds (one kilogram) or less, a manually handled
container should be of primary consideration.
C. Choose a container from the Delphi Standard Container List. (The Standard Container List can be
found at the Delphi Packaging website: http://apollo.delphiauto.net/packaging). Deviations from the
standard container list should occur only when parts do not fit in a standard container.
D. If a part weighs more than two pounds (one kilogram) or if the number of containers per eight hour shift is
greater than fifty, determine whether part should be bulk packed or if mechanical assistance is required.
E. The goal is to present parts to the operator in the supplier container where possible to avoid double
handling of parts. Only when significant reductions in operator cycle time outweigh the non-value-added
work of unpacking each part should parts be removed from containers by a material handler.
F. Again the goal is to present the parts to the operator in the supplier container. Consideration should be
given to designing the error proofing system to include part presentation in the supplied container.
G. Container will be part of the parts presentation device to the operator.
H. While container may not be delivered directly to the point-of-use, container handling must still be
considered. Ergonomics must also be considered.
I. Use common lot strategy to develop standard container quantity. Refer to Figure MM-4-E: Strategy for
Determining Standard Container Quantities-Common Lots in the Attachments section for a
discussion on common lot strategy. Reference container recommendations for common purchased parts
if developed. Once established, this standard pack or multiples of the standard pack must be used in
every shipment of that part.
J. Fifty container moves per shift is a guideline for the maximum number of containers an operator should
handle in order to minimize non-value-added work content.
K. Analyze the manufacturing process to determine if special material handling requirements are needed for
the containers being selected. Obtain technical support from appropriate functional areas.
L. Determine amount of material to be located at each workstation, which is dependent upon the frequency
of deliveries to the workstation. Ensure adequate floor space is available when developing a material
handling plan.
M. The use of returnables is based on an economic analysis of the total system. Expendable containers
should be used when the economic analysis does not support returnable containers.
N. After the initial container selection is made, present the proposal to the operators and/or material
handlers for approval and feedback. Feedback from areas using containers may disclose concerns that
were not known previously. Refer to Delphi Manufacturing Engineering Ergonomics Guidelines and
Delphi Ergonomics Worksheet for Container Design
http://apollo.delphiauto.net/health_safety/ergonomics/design-in.htm.
Key to Figure MM-4-D: Decision Process for Container Right Sizing and Material Movement Standards for Packaging
Helpful
The process of choosing the right sized
Hint
container may require a few iterations to
balance the needs of the manufacturing
cell and the material handling costs.

83
4.1.5 Determine if the container change will be returnable or expendable based on a

cost/benefit analysis through the entire value stream. Conduct Total Cost
Model Analysis as required. (Refer to DBS procedures.)
4.1.6 Make provisions for returnable containers.

4.1.6.1 Define the container return process.
4.1.6.2 Determine the number of containers required based on loop size for
the planned material delivery process.
Base the number of containers on the maximum tooled capacity for the
manufacturing process. Refer to MM-7.3 Supplier Pull for calculation or
utilize System Size Normals Worksheet found at:
http://apollo.delphiauto.net/lean_coe/docs/container/supplier_pack_template.xls.
4.1.6.3 Secure funding and acquire the proper number of containers.
4.1.6.4 Badge containers (supplier, receiving plant).
4.1.6.5 Contact supplier to communicate the plan for the returnable
container implementation.
4.1.7 Make provisions for expendable containers.

Contact supplier to communicate the new expendable container requirement.
4.1.8 Send out an implementation letter with the approximate start-up date.
Copy to following departments:
• Purchasing.
• Logistics.
• Plant representatives.
4.1.9 Supplier notifies the plant when containers are received; supplier and plant
agree on an exact date for the Product and Process Approval Plan (PPAP) and
start-up.
Pilot material must be shipped in production intent containers.
4.1.10 Notify all involved parties of the implementation date.

4.1.11 Update supermarkets and empty container storage areas to accommodate new
containers, including all visual controls and addressing.
4.1.12 Update manufacturing workstations to accommodate new containers.
4.1.13 Update Standardized Work for affected jobs.
4.1.14 Implement new containers.
4.1.15 Update the Plan for Every Part (PFEP) with new container and standard pack
information.

85
• Delphi Automotive Systems Supplier Packaging Manual, Delphi Packaging COE.
• Delphi Automotive Systems Packaging Validation Manual, Delphi Packaging COE.
• Supplier Containerization & Process Integration Model, Delphi E&C.
• Delphi Manufacturing Engineering Ergonomics Guidelines, Delphi Ergonomics
Council.
• Quality Network (QN 1026-1028) Containerization.
• Quality Network (QN 1076-1077) Small Lot.
• Common Procedure Requirement – Total Cost Collection Process.
• Standard Container Listing, Available on Apollo, Packaging Engineering Web Site
(http://apollo.delphiauto.net/packaging).
Attachment
• Figure MM-4-E: Common Lot Strategy Example for a Cell.

COMMON LOT STRATEGY EXAMPLE FOR A CELL

CELL OUTPUT = 60 PCS/HR
TUGGER DELIVERY ONCE PER HOUR
FOR ALL INCOMING MATERIAL, ONE PIECE PER FINISHED MODEL REQUIRED
CASTINGS COOLANT TUBES CUP PLUG
(unique part) (unique part) (unique part)
12 PCS /BOX 30 PCS/BOX 20 PCS /BOX
= 5 BOXES/HOUR = 2 BOXES/HOUR = 3 BOXES/HOUR BEARINGS (common part)
CONSUMED CONSUMED CONSUMED
AIR 480 PCS /BOX
SC = 1BOX CONSUMED
PRESS LEAK AS RE PRESS EVERY 8 HOURS
COOLANT TEST M. PL BEAR-
ST W
TUBES TUBES & CUUG UD INGS
I.D. MARK P
PLC PLC
1 2 3 5
4 SHAFT & LEVERS

SPRINGS
CLIPS
60 PCS / 60 PCS /
BOX BOX
FA SC
10 ST RE 7
9 EN 8 WS PLC
SET ASM. ER
60 PCS / ASM.
S
SHIP SENSOR MOTOR SET END-
BOX
AIR PLAY &
& PACK ASM.
VALVE
SHIPPING VALVES
FASTENERS SENSORS MOTORS
CONTAINERS (unique part)
(unique part) (unique part)
15 PCS/BOX
60 PCS /BOX 20 PCS/BOX
= 4 BOXES/HOUR
= 1 BOX/HOUR = 3 BOXES/HOUR
CONSUMED
CONSUMED CONSUMED
The strategy of common lots means that ideally all material is delivered to a manufacturing cell in the same
quantity per container, which divide evenly into the finished pack quantity. This strategy eliminates partially
used containers lineside. However, in a manufacturing cell, more than one finished product may be produced,
where some parts may be used on all models (common parts), some parts may be used on some or one model
(unique parts). In order to facilitate part changeovers in the cell, it is necessary to have a strategy different for
unique parts than for common parts. For parts that are unique parts, standard pack quantities should be divided
evenly into the finished pack. For common parts, standard pack quantities should be factors of 60
(60,30,20,15,12,10,5,4,3,2,1) or multiples of the finished pack. Benefits of the common lot strategy include:
• Allows faster changeovers by reducing the number of partially filled containers that must be handled.
• Reduces variability in tugger route deliveries by matching consumption of parts with delivery
• Aids in error proofing by reducing partially filled containers.
• Allows sequencing of parts to line by not requiring every part to be stored at line.
• Reduces stock at the line.
• Minimizes overbuild.
• Calculations of kanban loops are easier since full packs are used.
Figure MM-4-E: Common Lot Strategy Example for a Cell

87

MM-4.2 Repacking
MM-4.2 REPACKING
Repacking is the process of transferring parts from one container into a more appropriate size or
type of container to satisfy the needs of the next using customer. (Refer to Figure MM-4-G:
Repacking.) This is done as an interim solution to containerization.
Large Container Small Container
Figure MM-4-G: Repacking
Objectives
Listed below are the objectives of MM-4.2 Repacking:
• Eliminate non-value-added, non-cyclic work from the operator.
• Improve part presentation to the next using operation/operator.
• Reduce operator pick-face allowing operator envelope to be condensed.
• Provide opportunity to improve floor space utilization and reduce inventory in the
manufacturing area.
• Allow access to a greater variety of part numbers within the operator envelope.
• Support ergonomic parts presentation.

Listed below are the lean process indicators for MM-4.2 Repacking:
• The amount of non-value-added time attributed to repacking is decreasing.
• The amount of direct labor time savings attributed to repacking is increasing.
• The amount of productive floor space savings attributed to repacking is decreasing.

89
MM-4.2 Repacking
Elements of Effective Repacking

Listed below are elements of effective implementation of MM-4.2 Repacking:
• Number of repack areas is minimized.
• Location of repack area(s) is consistent with the material master plan (flow is optimized
from dock to repack area to point-of-use).
• Signs in repack area clearly identify the following:
• The location of material being repacked (part name, part number, color, etc.).
• The location and flow of incoming (empty) and outgoing (full) dollies or containers.
• Repack area conforms to Supermarket Storage. (Refer to How To MM-3.1
Supermarket/Bulk Storage).
• The number of carts, containers or dollies is appropriate for loop size.
• Material is delivered to operations using appropriate pull signals.
• Material being repacked is presented to re-packer in a manner that minimizes
ergonomic stress (tilt and lift tables, stands, etc.).
• Delivery carts and dollies are standardized with a common platform, hitch, towbar,
casters and are lightweight for ease of movement by the operator.
• Repacking meets safety and ergonomic requirements.
• The repacking process is documented and all potential quality problems have been error
proofed.
• Container labeling for the repack container provides part or kit name, part numbers,
quantity, repack location, operation addresses, footprint and loop size where
appropriate.
• Repacked parts are:
- In one standard size container.
- In standard quantities.
- Replenished using a pull signal (e.g., scrap card) when individual parts are damaged
or missing from the kit.
- Delivered via routes for productive material.
• To minimize handling, all inventory for the parts being repacked is stored in the repack
area and not an interim supermarket, if possible.

MM-4.2 Repacking
Refer to Figure MM-4-H: Issues/Advice - Repacking provides helpful information for

Issues/Advice
Repacking
• Repacking to downsize a delivery quantity should be an interim step while pursuing a
containerization strategy.
• Third party involvement is the last choice for repacking since it adds handling steps.
• It is difficult to compare benefits versus perceived/actual cost because the benefits
are in direct labor while the costs are in indirect.
• Never repack parts into a container that requires a fork truck to handle.
Figure MM-4-H: Issues/Advice - Repacking
Prerequisites
Prior to implementing MM-4.2 Repack, complete the following:
• Workstation parts presentation requirements (Flow MSD, Workplace Organization).
• How To MM-2 Plan for Every Part.
How To (Detail)
4.2 Repacking
4.2.2 Determine part numbers to be repacked.
4.2.3 Determine the Daily Volume and Route Frequency from the Plan for Every
Part (PFEP).
4.2.4 Determine pack size and standard pack quantity. Utilize common lot strategy.
Use common lot quantities (60, 30, 15, etc.) for each commodity to standardize
delivery routes and times. (Refer to Figure MM-4-F: Common Lot Strategy
Example for a Cell in the previous Attachments section.)
4.2.5 Provide the proper number of containers based on Production Pull

calculations and the repack lead-time. (Refer to MM-5 Pull Systems.)

91
MM-4.2 Repacking
4.2.6 Define the repack area.

The repack area may be in the purchased part supermarket, in a remote area in the
plant or in the production area. Design the repack area following the supermarket
layout. (Refer to How To MM-3.1 Supermarket/Bulk Storage).
4.2.7 Determine the method for repack and develop Standardized Work.
4.2.8 Define labor requirements.
4.2.9 Train employees using Standardized Work documentation.
4.2.10 Implement repack.
4.2.11 Continue pursuing containerization strategy to eliminate repack.
• Material Handling Design Criteria (Appendix II).

MM-4.3 Kitting
MM-4.3 KITTING
Kitting is the process of grouping parts into sets that are used together in a downstream
operation. Kits can be delivered in different ways:
• On the conveyance device (e.g. paced conveyor, power and free conveyor).
• Directly to the parts presentation device.
• On a delivery device (e.g. cart).
Figure MM-4-I: Kitting Pictorial displays this concept.
Line Flow
PALLET KIT PALLET KIT PALLET KIT
Operation 1 Operation 2
Figure MM-4-I: Kitting Pictorial
Objectives
Listed below are the objectives of MM-4.3 Kitting:
• Improve presentation of parts with high proliferation.
− Reduce operator pick face allowing operator envelope to be condensed.
− Provide opportunity to improve floor space utilization and reduce inventory in the
manufacturing area.
• Achieve one piece part flow to the operators.
• Facilitate model changeovers.
− Allow access to a greater variety of part numbers within the operator envelope.
− Support ergonomic parts presentation.
• Eliminate operator non-value-added, non-cyclic dunnage handling work in the
manufacturing area.
• Reduce the number of delivery points in the manufacturing area.

93
MM-4.3 Kitting

Listed below are the lean process indicators for MM-4.3 Kitting:
• The amount of non-value-added time attributed to kitting is decreasing.
• The amount of direct labor time savings attributed to kitting is increasing.
• The amount of floor space savings attributed to kitting is decreasing.
Elements of Effective Kitting

Refer to How To MM-4.2 Repacking - Elements of Effective Repacking.
Figure MM-4-J: Issues/Advice - Kitting provides helpful information for successful

implementation.
Issues/Advice
Kitting
• Use kitting when all parts cannot be presented effectively to the operator.
• Investigate smaller packs before resorting to kitting.
• Kitting works best when schedule and quality variation is minimized.
• Kitting requires rebalancing of manufacturing labor to redeploy to kitting operation.
• Kitting requires additional handling of parts, which increases the risk of damage.
• Special kitting containers are usually required, which drives added investment.
• Special processing will be required for replacement of any damaged parts found in kits.
Figure MM-4-J: Issues/Advice - Kitting
Prerequisites
Prior to implementing MM-4.3 Kitting, complete the following:
• Workstation parts presentation requirements (Flow MSD, Workplace Organization).
• How To MM-1 Plan for Every Part.

MM-4.3 Kitting
How To (Detail)
4.3 Kitting
4.3.2 Evaluate part presentation requirements and determine part numbers to be

kitted.
Consider all parts required in that manufacturing area. (Refer to Figure MM-4-K:
Guidelines for Delivery Frequency and Method Based on Part
Characteristics.)
Guidelines for Delivery Frequency and Method
Based on Part Characteristics
Internal Delivery Part
Method Cost Weight Size Variations Frequency
Sequencing High Heavy Large Many 10 Minutes
Sequencing High Light Large Many 10 Minutes
Electronic Pull System High Heavy Large Few 20-60 Minutes
Electronic Pull system Low Heavy Large Few 20-60 Minutes
Kitting High - Small Many 30 Minutes
Kitting Low - Small Many 30-120 Minutes
Pull Cards High Light Small Few 30 Minutes
Pull Cards Low Light Small Few 60-120 Minutes
Figure MM-4-K: Guidelines for Delivery Frequency and Method
Based on Part Characteristics
4.3.3 Review information from the Plan for Every Part (PFEP).
• Daily volume.
• Route frequency.
• Standard pack.
• Ship frequency.
4.3.4 Where possible, have supplier create the kit. Helpful

Hint It is best to push
kitting and other
forms of waste all
the way back to
the supplier.

95
MM-4.3 Kitting
4.3.5 Define the kitting process.

Consider the requirements of the operator, production system and the delivery
system.
4.3.5.1 Determine common lot quantity for parts to be kitted.
4.3.5.2 Establish part orientation and presentation to the operator utilizing
operator input.
4.3.5.3 Design kitting cart/container.
4.3.5.4 Design label.
Include kit parts identification, kit number (1 of x, 2 of x, etc.) and
addresses for kitting and using operation.
Helpful
Hint
Design part presentation
devices to support the operator
(lightweight and mobile).
4.3.6 Integrate kits into delivery route.

Refer to MM-6 Internal Delivery Routes.
4.3.7 Determine the proper number of kit containers to support the loop.
For loop calculations see Pull Systems (Pull Systems, MM-5). (Note: Remember
that the number of kitting containers must include allocation for both the
Production loop and the Withdrawal loop).
4.3.8 Design kitting area layout and Standardized Work for loading kitting
container.
Lay out kitting areas
Helpful
• Employ Flow Manufacturing cell design to hold all plant
Hint
concepts. inventory of the parts
being kitted. Storage
• Employ supermarket layout concepts.
of these parts in a
• Include error-proofing techniques. supermarket is a
redundant handling
step.

MM-4.3 Kitting
4.3.9 Adjust the Standardized Work for delivery and production operators.
4.3.10 Measure total work content and define labor requirements.
4.3.11 Train kitting, route and production employees using Standardized Work.
4.3.12 Adjust manufacturing area layout and workplace organization/visual controls

to accommodate footprints for kitting.
4.3.13 After the operation is ready to accept kitting container and kitting cell is
capable, implement route and kitting.
4.3.14 Update the PFEP if required.
4.3.15 Continuously evaluate the need to kit and eliminate or move up the value
stream.
• Material Handling Design Criteria (Appendix II).

97
MM-4.3 Kitting

MM-5 Internal Pull Systems
Overview
MM-5 INTERNAL PULL SYSTEMS

Pull systems can be separated into those that operate internal and those that operate external to
a plant. This How To is concerned with the application of pull systems that operate internal to a
plant.
In conjunction with production leveling, internal pull systems serve as the nervous system for a
value stream. They provide the instruction for the model, mix and sequence of what is to be
produced. Well-designed pull systems provide this instruction in a clearly defined simple to
understand manner.
There are two basic types of internal pull systems. Withdrawal Pull authorizes the movement of
material from storage to the point-of-use. It provides clear instruction as to the point-of-storage
and a point-of-use via addressing. Additionally, pack quantities, product names and other
information can be provided by the pull system.
The second basic type of internal pull system is Production Pull, sometimes referred to as
Production Instruction Kanban. Production Pull authorizes the manufacture or assembly of
component parts or finished product at the request of the next point-of-use.
In simplest terms, the Withdrawal Pull provides the shopping list while the Production Pull
provides the instruction to replace what has been consumed. See Figure MM-5-A: Internal Pull
Systems. A system that uses both the Withdrawal and Production Pull is often referred to as a
two-card system. In some limited cases, where a dedicated stock person is provided and the
inventory and customer process are co-located, the withdrawal side of the pull system is not
needed. This type of system is referred to as a one-card system.
Super- Customer
Supplying
market
Process Process

Figure MM-5-A: Internal Pull Systems

99
Overview
The success of pull system implementation is

dependent, to a large extent, on the stability or
High
amount of variation that exists in the system. (Refer
Probability of Success
to Figure MM-5-B: Variation vs. Probability of
Success.) The instability can come in the form of
process or demand variation. The demand variation
can often be minimized through the use of a
production leveling process at the pacemaker
Low
process. (Refer to How To IG-2 Value Stream
High Low
Mapping). Consequently, Production Leveling is a Variation
prerequisite to pull system implementation. The
Figure MM-5-B: Variation vs.
process variation must be minimized through basic Probability of Success
problem solving initiatives as found in the
Implementation Guide Introduction.
The existence of system variation does not necessarily prevent the implementation of a pull
system. Although the variation can impact the probability of a successful implementation, the
appropriate pull system design can overcome many problems.
Objectives
Listed below are the objectives of MM-5 Internal Pull Systems:
• Establish one simple standardized method of controlling and balancing the flow of
resources.
• Provide quantity control for production and conveyance of materials.
• Support transition from large to small lot production.
• Visually manage the information flow on the manufacturing floor.
• Minimize the number of steps required in the process.
• Eliminate the waste of handling, storage, tracking, obsolescence, repair, rework,
facilities, equipment, excess inventory and shortages.
• Replace only what has been consumed.
• Manufacture and ship only what is required.
• Support continuous improvement.
• Provide resources just-in-time based on customer demand.
• Reduce lead time from beginning to end of the process.
• Organize material handling and manufacturing processes to maximize throughput.
• Improve quality by reducing opportunities for defects and the time to detect.
• Create a cooperative environment.

Overview
Types of Pull Systems
The preferred There are a variety of different Withdrawal and Production Pull Systems that
method is the can be applied depending on the characteristics of the value stream and
use of a pull processes that are involved. Figure MM-5-C: Types of Internal Pull
card (Kanban Systems depicts options that exist for signaling the withdrawal or production
Card). pull. The preferred method is the use of a pull card (Kanban Card).
Card Pull
Production Sequencing Pull

Pull Lot Forming Pull
Internal Container Exchange

Pull
Systems
Withdrawal Card Pull
Pull
Container Exchange
Figure MM-5-C: Types of Internal Pull Systems
Pull cards (Figure MM-5-D: Pull Card) provide a visual flexible method of controlling quantity
and sequence of production in addition to providing very basic instruction. Although we provide
information about other types of pull signals, always consider the Card Pull System first when
designing a system.
PART NAME STORE

MAKE
LOCATION J-Car LOCATION
505 DEPT.
505 DEPT PART #
2620
DOCK
Cell A
Primary
1804 QUANTITY
Cell B PROCESS
Secondary
ASSEMBLY 152
Figure MM-5-D: Pull Card

101
Overview
Temporary Pull Signals

There are circumstances that require a temporary increase in inventory and associated pull
signals. This is accomplished by using temporary pull signals. (Refer to MM-5-E: Temporary
Pull Card.) Temporary signals are intended to provide the instruction to produce on a one time
basis. Remove the temporary signal from the system at the time of consumption of the parts. and
do not recirculate the signal.
STORE
Helpful
PART NAME
MAKE
LOCATION J-Car LOCATION Use temporary pull
505 DEPT.
505 DEPT PART #
Hint signals for special
2620
DOCK situations like
Cell A
Primary
1804 QUANTITY engineering changes,
Cell B PROCESS
build ahead, or
Secondary
ASSEMBLY 152 construction downtime.
Figure MM-5-E: Temporary Pull Card
Pull System Rules for Operation

For pull systems to operate successfully, basic standards of operation must be followed. These
standards have been documented in the form of basic rules for operation as follows:
• Never produce or convey material without the authorization of a pull signal.
• Never pass defective parts on to the customer process.
• Attach a pull signal to each standard pack of material.
• Always build in standard pack quantities according to the pull signals.
• Return pull signals to the designated locations for return to the supplying department.
• Remove withdrawal pull signals from the material as soon as the first piece is
consumed from the container.
• Remove production pull signals from the container as the container of parts is
withdrawn from the storage location.
• If you must use temporary signals, use them only once and then remove them from the
system.
• The customer process is responsible for operating the withdrawal loop and the
supplying process is responsible for operating the production loop.
The information on the following page lists the summary step for the implementation of internal
pull systems. (Refer to How To's MM-5.1: Production Pull and MM-5.2: Withdrawal Pull for
more detailed information.)

Overview
How To (Summary)
Listed below are the Implementation Steps for MM-5 Internal Pull Systems:
5.1 Implement a Production Pull System.
5.1.1 Develop a cross-functional team.
5.1.2 Review the Site Plan and identify the value stream in which to implement.
5.1.3 Review the Current and Future State Value Stream Maps to determine the pacemaker
process.
5.1.4 Verify that Production Leveling has been implemented at the pacemaker process and is
properly functioning.
5.1.5 Select a Production Pull System.
5.1.6 Determine the changeover frequency for each part number.
5.1.6.1 Determine the average daily demand.
5.1.6.2 Determine the time required to process the daily requirements at the process.
5.1.6.3 Determine the amount of Scheduled Run Time for the process.
5.1.6.4 Determine the time available for changeover.
5.1.6.5 Determine the number of changeovers possible.
5.1.6.6 Make adjustments (if necessary).
5.1.7 Verify that the appropriate pull system type has been selected.
5.1.8 Estimate the desired buffer for each part number and determine the number of pull
signals needed for that buffer.
5.1.8.1 Determine any Temporary Stock.
5.1.8.2 Determine the Cycle Stock (Running Stock).
5.1.8.3 Determine the Manufacturing and Demand Variation Stock.
5.1.8.4 Estimate the Emergency Stock that is needed.
5.1.8.5 Calculate the number of pull signals needed for buffer.
5.1.9 Determine the location for the production pull board.
5.1.10 Determine the drop-off and pick-up locations for the pull cards at the supplying
process.
5.1.11 Make the pull cards.
5.1.12 Design and build the production pull board.
5.1.13 Develop an education and training plan.
5.1.14 Implement any necessary changes to the supermarkets and containers.
5.1.15 Implement any required workplace organization changes.
5.1.16 Develop and post the pull system Standardized Work.
5.1.17 Conduct the pull system training.
5.1.17.1 Train employees.
5.1.17.2 Train affected supervisors.
5.1.18 Achieve target inventories.
5.1.19 Establish pull system maintenance procedures.

103
Overview
5.2 Implement a Withdrawal Pull System.

5.2.3 Review the Current and Future State Value Stream Maps to determine the type of
Production Pull System implemented at each loop.
5.2.4 Select a Withdrawal Pull System.
5.2.5 Design each pull loop.
5.2.5.1 Begin to plan the internal delivery routes.
5.2.5.2 Document procedures.
5.2.5.3 Design the cards.
5.2.5.4 Determine the number of cards in each withdrawal loop.
5.2.6 Determine the parts presentation and required space at the point-of-use.
5.2.7 Determine the drop-off and pick-up locations for the pull cards at the customer process.
5.2.12 Conduct pull system training.

MM-5.1 Production Pull
MM-5.1 PRODUCTION PULL

Production Pull authorizes the manufacture or assembly of component parts or finished product
at the request of the next point-of-use. (Refer to Figure MM-5-F Internal Pull Systems –
Production Pull.)
Super- Customer
Supplying
market
Process Process

Figure MM-5-F: Internal Pull Systems – Production Pull
As depicted in Figure MM-5-G: Types of Production Pull Systems there are four types of
production pull systems: Card Pull, Sequencing Pull, Lot Forming Pull and Container Exchange.
Card Pull
Sequencing Pull
Production
Pull Lot Forming Pull
Container Exchange
Figure MM-5-G: Types of Production Pull Systems

105
Card Pull
Card Pull is a system that uses production pull cards to authorize production of parts. (Refer to
Figure MM-5-H: Production Pull - Card Pull.)
1. As a container of parts is removed from the supermarket, the pull card is removed and
placed in a holding post/box.
2. At a predetermined frequency, the cards are transferred to the supplying process and
placed in sequence in a box.
3. Using the first card in sequence, the process operator produces the part number
specified in the designated quantity.
4. Upon completion of the quantity of parts specified on the card, the card is placed in or
on the container.
5. The card and container are placed into the supermarket to complete the cycle.
Now I can make

one more
container.
2
1
Supplying
Process 3
4 XX
Figure MM-5-H: Production Pull - Card Pull Supermarket

Advantages
• Ability to easily assess and control production.
• Provides inventory control.
• Facilitates customer ownership of the withdrawal loop and supplier ownership of the
production loop.
• Most flexible of production pull systems.
• Better able to handle a wide range of products.
• Able to provide additional instruction to user.
Disadvantages
• Maintenance of cards (lost cards, damage, point-of-use location changes, part number
changes, etc.).
Best When
• A lot/batch is contained within one container.
• Managing multiple part numbers.
• Larger inventories of each part number are required.
Helpful
Hint A basic Card Pull system provides for production
of parts in the sequence that they are consumed
and in the quantity that they are consumed.

107
Sequencing Pull
Sequencing Pull is a system that uses the sequence of part numbers on a scheduling board or
wheel to sequence changeovers. This system is used when the supplying process cannot
efficiently changeover in the same sequence as the customer process. (Refer to Figure MM-5-I:
Sequencing Board.)
placed into a holding post/box.
2. The cards are transferred to a board and placed into the next open slot for that part
number.
3. The parts are produced in sequence (left to right) assuming a predetermined lot quantity
is reached for that part number (the lot quantity designated may be “1”). If a part
number has not reached its designated lot quantity then it is skipped until the next
cycle. As with other card based systems, as each container of parts is produced, a
corresponding card is placed in the container.
4. The card and container are placed into the supermarket.
• Production is continued for a part number until production is completed for all
posted cards.
• The production line is then changed over to the next part number in sequence that
has reached the designated lot size.
1
2
3
Dept.
P/N
1234
P/N
2345
P/N
3456
P/N
7890
P/N
8901
P/N
9102
Super-
market
Supplying
Process
Indicates
standard lot
quantity.
4
Figure MM-5-I: Sequencing Board

Advantages
• Minimizes changeover duration in situations where the duration of changeovers can
vary based on sequence.
• Can support batch type production.
• Provides for visual management of cards.
Disadvantages
• Does not display inventory status.
• Generally requires more inventory to support than the Lot Forming system, due to the
increased time for replenishment.
• Maintenance of cards (lost cards, damaged cards, point-of-use location changes, part
number changes, etc.).
Best When
• A specific sequence of changeovers is preferred.
• Changeover improvements have failed to reduce lot/batch size to less than or equal to
one container.
A sequencing wheel can be used to provide the

sequence of production instead of a specific
Helpful
pattern on the board.
Hint
Run
Here
231
PPa
art# #1
ratr#
PPa
art
1432
t #1
ratrt#
rrtt ##
PP
#112
PPaa
12
0
PPaa
rtrt#
#192 # 25
3
4
0
1 P art
8
9 P
Paarr
#11
10 tt ##
PParart t# 36
4
5
798
10
#
rt
PPa
t#
Pa
# 876
9
arrt
PPaa
ar
t##
P
rrtt #
rt
7546
Pa
#5876
Direction of Wheel Rotation

109
Lot Forming Pull (Signal Kanban)

Lot Forming Pull is a system that uses an accumulation of cards (a predetermined quantity) to
create production lots on a signal board. This process is used when the supplying process cannot
produce in the same lot/batch quantity as the consuming process. (Refer to Figure MM-5-J: Lot
Forming Board.)
placed into a holding post/box.
2. Cards accumulate, by part number, on the holding post/box until a designated lot size is
reached.
3. The formed lots are transferred to a Signal Board and placed into a Signal Box (by part
number) and in sequence for the designated line/machine.
4. The lots are produced in the sequence designated on the board First In/First Out (FIFO).
As the preceding lot is completed, the cards are taken to the line for consumption and
the Signal Box is moved into the Running spot for the specified line on the Signal
Board.
1
4 3
2
SIGNAL BOARD
LINE STATUS SIGNAL STORAGE
Model A Model B
Schedule Running
MACHINE 1
Supplying Model C Model D
Super-
market
Process MACHINE 2
Model E Model F
5 MACHINE 3
7
A Signal 6
Box with
one lot of
cards Figure MM-5-J: Lot Forming Board

5. As with any card based system, a card is placed in each container as the production for
the container is completed.
6. The container with the card attached is placed into the supermarket.
7. As the production for the last card in the lot is completed, the empty signal box is
moved to the designated part number location on the inventory side of the Signal Board
completing the cycle.
Advantages
• Best method for displaying inventory status.
• Designed to support batch type production.
• Provides for visual management of cards.
• Changeover schedule is visual.
Disadvantages
changes, etc.).
• Does not sequence changeovers based on supplier process requirements.
• Requires more inventory than a basic card pull system.
Best When
• Sequence of changeovers is not a significant factor.
• Changeover improvements have failed to reduce lot/batch size to less than or equal to
one container.

111
Container Exchange
Container Exchange is a system that uses an empty container or dolly as a physical signal to
authorize production of material. (Refer to Figure MM-5-K: Production Pull - Container
Exchange.)
1. As a container of parts is emptied it is cycled back to the designated production line and
put in sequence for production.
2. The production process produces in sequence based on the information specified on the
container.
3. Upon completion of the specified production, the completed container is placed into the
supermarket completing the cycle.
3
Completed
PART LIN
PART LIN
P-90 REAR DRUM-
LOCATIO
P-90 REAR DRUM-
LOCATIO
XX PART
XX XX PART
XX
XXXX-
XXXX-
container is
USER/STOR QUANTIT
USER/STOR QUANTIT
PROCES
XX
PROCES
STAM X XX STAM X
returned to
inventory.
2 Container
is empty.
1
Operator pushes empty

PART LIN
P-90 REAR DRUM-

LOCATIO
PART LIN
XX XX P-90 REAR DRUM-

PART LOCATIO
XXXX- XX XX
container out to signal
PART
USER/STOR QUANTIT
PROCES
USER/STOR XXXX- QUANTIT
XX STAM X PROCES
XX STAM X
for production of
material.
Figure MM-5-K: Production Pull - Container Exchange

Advantages
• Eliminates the need to maintain pull cards.
• Simple to apply when dealing with only one part number.
Disadvantages
• Can be difficult to assess production status.
• Application increases in difficulty when processes are further apart.
• Each container/dolly must be dedicated to a specific part number.
• Container information must be maintained.
• Becomes very cumbersome if part numbers increase.
• Requires more floor space and containers than other systems.
• Difficult to accommodate changes.
• Does not provide adequate control over the sequence and quantity of product produced.
Best When
• Low inventory quantity of each part number is required.
• Managing minimal part numbers.
• Container space and locations are available.
• Additional/dedicated containers are available.
Helpful
Hint Due to the inability to provide for adequate
control of the sequence and quantity of product
produced, this system is normally not
recommended.

113
Prerequisites
Prior to implementing MM-5 Internal Pull Systems, complete the following How To's:
• IG-1 Site Plan.
• IG-2 Value Stream Mapping.
• WO-3 Addressing.
• MM-1 Plan for Every Part (PFEP).
• MM-3 Designated Storage.
• MM-4.1 Containerization.
• MM-6 Internal Delivery Routes.
How To (Detail)
5.1 Implement a Production Pull System.

Refer to How to IG-1 Site Planning Process.
5.1.3 Review the Current and Future State Value Stream Maps to determine the
pacemaker process.
Refer to How to IG-2 Value Stream Mapping.
5.1.4 Verify that Production Leveling has been implemented at the pacemaker
process and is properly functioning.
Refer to How To MM-2.2 Production Leveling. If Production Leveling is not
properly functioning at the pacemaker loop then do not attempt to implement pull
systems. Evidence of a properly working level schedule is as follows:
• A repetitive pattern of part numbers is produced on an ongoing basis.
• The daily production plan is achieved on a regular basis, including total
volumes and model mix.

5.1.5 Select a Production Pull System.

Working from the pacemaker process back up the value stream, identify the pull
loop locations. Use the decision tree shown in Figure MM-5-L: Selecting a
Production Pull System to select the appropriate pull system type for each
production loop. You need the following information:
• Part Numbers. • Changeover Sequence (if any).
• Daily Volumes. • Changeover Durations.
• Standard Pack Quantities. • Production Batch Sizes.
• Downtime. • Cycle Times.
• Production Rates. • Scrap.
• Consumption Rates. • Rework.
Use Is this the pacemaker

Production YES process?
Leveling
Process NO
Is there more than 1

NO
part number produced
by this line/process?
YES
Is space available to YES Can a production lot

NO
Use Card support additional be contained in 1
Pull containers? container?
NO
YES
Is a specific
NO Are additional changeover sequence YES Use Sequencing
containers available? necessary to minimize Pull
changeover duration?
YES
NO
Use Use Lot

Container Forming
Exchange
Figure MM-5-L: Selecting a Production Pull System
Helpful
Hint Complete Steps 5.1.6 through 5.1.20 for each
production loop in the value stream beginning
with the process supplying the pacemaker
process and working back upstream.

115
5.1.6 Determine the changeover frequency for each part number.
5.1.6.1 Determine the average daily demand.
5.1.6.2 Determine the time required to process the daily requirements at the
process. (Exclude any time consumed for changeovers.)
Time Required Calculation:

Time = Daily Production Cycle Time
X
Required (in pieces) (per piece)
5.1.6.3 Determine the amount of Scheduled Run Time for the process.
(Refer to How To MSD-2.2.)
5.1.6.4 Determine the time available for changeover.

Subtract the time required to process the daily requirements from the
Scheduled Runtime.
Time Available for Changeover Calculation:

Time Available for Scheduled Run Time _ Time Required
=
Changeover (minutes) (minutes) (minutes)
5.1.6.5 Determine the number of changeovers possible.

Divide the time available for changeover by the time required to
accomplish a changeover to determine the number of changeovers
possible.
Number of Changeovers Possible Calculation:
Number of Time Available for Changeover (minutes)

=
Changeovers Possible Time Required for a Changeover

Helpful
Some processes require that changeovers be
Hint
accomplished in sequence to minimize changeover
durations. Be sure to consider this in the design
of the pull system.
5.1.6.6 Make adjustments (if necessary).

If the time available for changeover is negative or the batch size is not
reduced to a desirable level, make adjustments.
Consider the following options:
• Increase capacity through productivity gains.
− Scrap/rework reductions.
− Workstation redesigns.
− Uptime improvements.
• Adjust the Scheduled Run Time.
− Tag relief.
− Planned overtime.
− Two shifts to three shifts.
− Seven days versus six days or six days versus five days.
5.1.7 Verify that the appropriate pull system type has been selected.
Base this on any changes made in the preceding step (How To MM-5-1-6-6).

117
5.1.8 Estimate the desired buffer for each part number and determine the number
of pull signals needed for that buffer.
5.1.8.1 Determine any Temporary Stock.

Temporary Stock is a buffer that is built and maintained using temporary
pull signals due to a temporary condition such as engineering change,
seasonal demand, part reallocation, etc.
5.1.8.2 Determine the Cycle Stock (Running Stock).
Determine the production interval (G) for the part as follows (Refer to
Figure MM-5-M: Cycle Stock (Running Stock) Calculation Table:
• For parts that are produced every day the interval (G) is 1.
• For parts that are produced every other day the interval (G) is 2.
• For parts that are produced one time for every three days of production
the interval (G) is 3.
• For parts that are produced one time for every five days of production
the interval (G) is 5.
Determine the frequency per interval (H) that each part is produced for
each interval. For example, if the interval is 1 and the part is produced
three times per day the frequency (H) is 3. (Refer to Figure MM-5-M:
Cycle Stock (Running Stock Calculation Table.)
Determine the Production Delay (J) from the time that the associated
product is consumed until the replenishment is complete. (Refer to Figure
MM-5-M: Cycle Stock (Running Stock Calculation Table.)
Calculate the Cycle Stock (Running Stock) as follows:
Cycle Stock (Running Stock) Calculation:
Cycle Stock (Running Stock) = Daily Demand x (J + 1)* G

H
Step 5.1.8.2 is intended as a general guideline and

Helpful assumes that the supplying process can produce at a rate
Hint equal or greater than and in the same sequence as the
customer process(es). In cases where this is not possible
it may be necessary to add Production Delay signals to
compensate for the additional time required to replenish.

G H J Changeover Frequency
Production Frequency Production

Interval Per
(days)
Delay Monday Tuesday Wednesday Thursday Friday
Interval
1 1 1
1 2 1
1 4 1
…And so on………
1 8 3
Wk
1
2 1 1
Wk
2
Wk
1
5 1 1
Wk
2
Figure MM-5-M: Cycle Stock (Running Stock) Calculation Table
5.1.8.3 Determine the Manufacturing and Demand Variation Stock.

The Manufacturing and Demand Variation Stock is the buffer needed for
normal variation in manufacturing daily production and normal variation
in daily demand from the customer processes.
• Set-up a Data Table. (Refer to Figure MM-5-N Data Table
Template.)

119
− Enter the Daily Demand from the customer processes in the Data
Table (Column B) for the previous thirty days.
− Enter the Daily Production in the Data Table (Column C) for the
previous thirty days. Ensure that the daily production entered is
representative of long term process performance.
− Utilizing the formulas provided in the last row of the Data Table
Template [=2*STDEV(B2:B31) and =2*STDEV(C2:C31)],
determine the Demand Variation (Column B) and the
Manufacturing Variation (Column C).
Column B Column C
Day
Daily Demand Daily Production
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
=2*STDEV(B2:B31) =2*STDEV(C2:C31)
Figure MM-5-N: Data Table Template

− Calculate the Manufacturing and Demand Variation Stock required

for manufacturing and demand variation. Assume the Demand
Variation is A and the Manufacturing Variation is B.
Manufacturing and Demand Variation Stock Calculation:
Manufacturing and Demand Variation Stock =

A2 + B2
5.1.8.4 Estimate the Emergency Stock that is needed.
Emergency Stock is the buffer that is maintained due to unplanned stock
outages, tooling shortages, equipment shortages or downtime and
unplanned downtime reasons that are not captured in the Manufacturing
Variation Stock calculation.
5.1.8.5 Calculate the number of pull signals needed for buffer.
Divide the total of the Cycle Stock, Manufacturing and Demand Variation
Stock and Emergency Stock by the Standard Pack Size.
Number of Pull Signals Needed for Buffer Calculation:

Number of Pull Cycle + Manufacturing and Demand + Emergency Stock
Signals Needed =
Standard Pack Size
5.1.9 Determine the location for the production pull board.
The production pull board should be located adjacent to the supplying process.
5.1.10 Determine the drop-off and pick-up locations for the pull cards at the
supplying process.

Make cards large enough so that they do not comfortably fit in a person’s pocket.
Additionally, make card design consistent throughout the plant.
5.1.12 Design and build the production pull board.
5.1.14 Implement any necessary changes to the supermarkets and containers.

121
5.1.17 Conduct the pull system training.

Train employees assigned to all shifts at the supplying and consuming
processes for the pull system loop.
• Describe the loop operating procedures.
• Discuss the appropriate actions when abnormalities occur.
Include the following:
• Detailed operation of the system.
• Maintenance and monitoring procedures.
• Appropriate action for managing abnormalities.

It is important that the necessary inventories calculated above are in place prior to
pull system implementation.

The number of pull signals in the system needs to be adjusted based on any
significant changes in demand or performance changes in the customer or supplying
process. Make changes as follows:
• Make adjustments in small increments to prevent any disruption to the
supplying or customer processes.
• Plan adjustments in conjunction with the normal planning cycle (typically every
four weeks) for the value stream.
• If an increase in the number of pull signals is required, implement the changes
prior to the associated increases in demand
• If a decrease in the number of pull signals is required, implement the changes
incrementally throughout the current planning cycle.
• Ambrake Production System.
• Toyota Production System.

MM-5.2 Withdrawal Pull

Withdrawal Pull authorizes the movement of material from storage to the point-of-use. (Refer
to Figure MM-5-O: Internal Pull Systems - Withdrawal Pull.)
Super- Customer
Supplying
market
Process Process

Figure MM-5-O: Internal Pull Systems – Withdrawal Pull
As depicted in Figure MM-5-P: Types of Withdrawal Pull Systems, there are two types of
withdrawal pull systems: Card Pull and Container Exchange.
Card Pull
Withdrawal
Pull
Container Exchange
Figure MM-5-P: Types of Withdrawal Pull Systems

123
Card Pull
Card Pull is a system that uses withdrawal pull cards to authorize movement of parts. (Refer to
Figure MM-5-Q: Withdrawal Pull - Card Pull.)
1. As a container of parts is consumed by the customer process, the withdrawal card is

removed from the container and placed in a holding post/box.
2. The pull cards are picked up at designated time intervals from the post/box.
3. A designated person, using the instruction provided on the card, removes the
corresponding parts from the supermarket and places the withdrawal card in/on the
container. The production pull card is removed from the container at this time.
4. The parts with the withdrawal pull card are delivered to the customer process
completing the cycle.
I know what I
need, how many 1
I need and where
to find it.
3
Customer
Process
X 2
4
Supermarket
Figure MM-5-Q: Withdrawal Pull - Card Pull

Advantages
• Provides line side inventory control.
• Facilitates customer ownership of the withdrawal loop and supplier ownership of the
production loop.
• Functions as a pick-list.
• Most flexible of withdrawal pull systems.
• Better able to handle a wide range of products.
• Provides the foundation for the supermarket and internal delivery routes.
Disadvantages
changes, etc.).
Best When
• Managing multiple part numbers.
• Multiple customer processes.
Helpful
Hint A Withdrawal
Pull Card becomes the
second card in a
two-card system.

125
Container Exchange
Container Exchange is a system that uses an empty container or dolly as a physical signal to
authorize withdrawal of material from a supermarket. (Refer to Figure MM-5-R: Withdrawal
Pull - Container Exchange.)
1. As a container of parts is emptied it is cycled back to the supermarket and exchanged

for a full container of the same part number.
2. The full container of parts is provided to the customer process for consumption.
2
PART LIN
PART LIN
P-90 REAR DRUM-
LOCATIO
P-90 REAR DRUM-
LOCATIO
XX
USER/STOR
PART
XX
XXXX- QUANTIT
Exchange is XX
USER/STOR
PART
XX
XXXX- QUANTIT
XX
PROCES
STAM X completed by XX
PROCES
STAM X
replacing empty
container.
Container
is empty.
PART LIN
1 PART LIN
P-90 REAR DRUM-
LOCATIO
P-90 REAR DRUM-
LOCATIO
XX PART
XX XX PART
XX
XXXX- XXXX-
Operator pushes empty
USER/STOR QUANTIT USER/STOR QUANTIT
PROCES
XX STAM X XX
PROCES
STAM X
container out to signal for
replenishment of material
Figure MM-5-R: Withdrawal Pull - Container Exchange

Advantages
• Eliminates the need to manage/maintain pull cards.
• Can work well for kitting or repacking.
• Simple to apply when dealing with minimal part numbers.
Disadvantages
• Can be difficult to visually assess production/inventory status.
• Application increases in difficulty when processes are further apart.
• Each container/dolly must be dedicated to a specific part number/kit.
• Can become cumbersome if part numbers increase.
• Generally requires more floor space and containers than other systems.
• Can be difficult to accommodate changes.
Best When
• Low inventory quantities of each part number are required.
• Managing minimal part numbers.
• Container space and locations are available.
• Additional/dedicated containers are available.
Helpful
Hint Containers must be labeled with the same basic
information that is normally included on the Pull
Card. Additionally, the containers must be
serialized for each part number.

127
How To (Detail)
5.2 Implement a Withdrawal Pull System.

Refer to How to IG-1 Site Planning Process.
5.2.3 Review the Current and Future State Value Stream Maps to determine the type
of Production Pull System implemented at each loop.
5.2.4 Select a Withdrawal Pull System.

Working from the pacemaker process back up the value stream, use the decision
tree shown if Figure MM-5-S: Selecting a Withdrawal Pull System to select the
appropriate pull system type for each withdrawal loop. You need the following
information:
• Part Numbers. • Changeover Sequence (if any).
• Daily Volumes. • Changeover Durations.
• Standard Pack Quantities. • Production Batch Sizes.
• Downtime. • Cycle Times.
• Production Rates. • Scrap.
• Consumption Rates. • Rework.
Does the production side of

this supermarket use
Container Exchange?
Does this withdrawal

loop require kitting
Use Card Pull NO
and/or repackaging to
NO
support the customer
YES
process?
YES
Use Container
Exchange
Figure MM-5-S: Selecting a Withdrawal Pull System

5.2.5 Design each pull loop.

Begin with the processes supplying the pacemaker process and work back
upstream.
5.2.5.1 Begin to plan the internal delivery routes.
Refer to How To MM-6 Internal Delivery Routes to understand the
different types of delivery route processes (coupled, de-coupled, double
de-coupled). Assume de-coupled route, unless low volume or start-up
dictates a temporary coupled process.
5.2.5.2 Document procedures.
Develop detailed procedures for the following:
• Collecting cards.
• Picking up cards and delivering materials.
(Refer to How To MM-6 Internal Delivery Routes.)
• Picking up stock from designated storage.
(Refer to How To MM-3 Designated Storage.)
5.2.5.3 Design the cards.
5.2.5.4 Determine the number of cards in each withdrawal loop.
Because the number of cards required is dependent on the length of time it
takes for a card to cycle through removal from the consumed pack to
delivery of the required material, the number of cards required varies
depending on the type of supporting route. The length of time changes
based on the line speed, usage per final assembly, delivery cycle and
replenishment factor. Calculate the number of cards using the following
formula:
Number of Cards Calculation:
Line Speed Usage Delivery Cycle Replenishment Factor

Number of Cards (pieces / hour) X (pieces / job) X (hours) X (See Figure MM-5-T)
(round up)
=
Standard Pack
(pieces / container)
• Line Speed - The total number of assemblies that pass the operator in
an hour (breaks not included).
• Usage per Final Assembly - The maximum quantity of each part
number that an operator can use on a single end item.
• Delivery Cycle - The elapsed time (in hours) from one delivery until
the next delivery. (Refer to How To MM-6 Internal Delivery Routes.)

129
• Replenishment Factor - This represents the lead time multiplier of

the number of delivery cycles between the order and receipt of
material by the production operator. Use the replenishment factors
shown in Figure MM-5-T: Replenishment Factor for the
calculation.
Delivery Type Route Lead Time Running Stock Replenishment Factor

Coupled 2 1 3
De-coupled 3 1 4
Double Decoupled 4 1 5
Figure MM-5-T: Replenishment Factor
Helpful
Hint An alternative method of calculating the pull loop
signal/card quantities for Withdrawal Pull is the use of
Figure MM-5-M: Pull Signal Calculation Table.
5.2.6 Determine the parts presentation and required space at the point-of-use.
The amount of stock at the point-of-use must last until the next delivery at the
highest usage rate including some safety factor for variability of the delivery
process. The maximum amount of stock that could be at the point-of-use
corresponds to the Number of Cards in the loop plus one.
5.2.7 Determine the drop-off and pick-up locations for the pull cards at the
customer process.

Cards should be large enough that they do not comfortably fit in a person’s pocket.
Additionally, card design should be consistent throughout the plant.

5.2.12 Conduct pull system training.

Train employees assigned to all shifts at the supplying and consuming
processes for the pull system loop.
• Describe the loop operating procedures.
• Discuss the appropriate actions when abnormalities occur.
• Detailed operation of the system.
• Maintenance and monitoring procedures.
• Appropriate action for managing abnormalities.

It is important that the necessary line side inventories calculated above are in place
prior to pull system implementation.

The number of pull signals in the system needs to be adjusted based on any
significant changes in production rate (consumption), standard pack or the delivery
system.
• Ambrake Production System.
• Toyota Production System.

131

MM-6 Internal Delivery Routes
MM-6 INTERNAL DELIVERY ROUTES

Internal Delivery Routes is a system to replenish material (purchased, in-process and finished
goods, both hand carried and bulk) and remove empty containers based on a predetermined
delivery path and fixed start times supporting pull delivery to a specific number of production
delivery points-of-use.
Internal Delivery Routes, implemented effectively, convey all material (and empty containers)
through the entire value stream within the walls of the manufacturing facility. (Refer to Figure
MM-6-A: Internal Delivery Route.)
7 8 9
C1
5 4 3 2 1
7 8 9
C2
5 4 3 2 1
Internal
Delivery Route
Figure MM-6-A: Internal Delivery Route
Objectives
Listed below are the objectives of MM-6 Internal Delivery:
• Support the manufacturing operator through providing the right part at the right time in
the right quantity in the right container.
• Frequent deliveries in small lots.
• Improve material flow.
− Improve control.
− Reduce variation.
− Improve levelness.
− Reduce inventory.
− Standardize delivery frequency.
• Facilitate use of pull system.
• Facilitate changeover process.
• Support Standardized Work for material handlers.

133

Listed below are the lean process indicators for MM-6 Internal Delivery Routes:
• Number of production disruptions due to out-of-stock condition at point-of-use
(per day, week, month) is decreasing.
• Quantity of containers delivered per route is increasing.
• Overall inventory is decreasing.
• Overall floor space requirements are decreasing.
• Variability of pulls cards delivered per cycle is decreasing.
• Variability of actual route times is decreasing.
• Number of fork trucks in the manufacturing area is decreasing.
Figure MM-6-B: Issues/Advice – Internal Delivery Routes provides information for

Issues/Advice
Internal Delivery Routes
• Consider safety (traffic patterns) and ergonomics when developing tugger routes.
• Pilot area should be small enough to demonstrate success.
• Develop flexible staffing plans for weekends/overtime/volume shifts/equipment breakdown.
• Strictly adhere to scheduled delivery times.
• Requires production leveling for a sustainable route system.
• Requires the use of pull signals to trigger delivery.
• Requires tugger and trailer planned maintenance and safety checks.
• Requires workplace organization and visual controls.
• Best when containerization and common lot strategy is in place.
• Best when material is in hand carried containers.
Figure MM-6-B: Issues/Advice – Internal Delivery Routes
Prerequisites
Listed below are the prerequisites of MM-6 Internal Delivery:
• How to IG-1 Site Planning Process. • How to MM-3 Designated Storage.
• How to WO-3 Address System. • How to MM-4 Container Right Sizing
• How to MM-1 Plan For Every Part PFEP. and Supporting the Operator.
• How to MM-2.2 Production Leveling. • How to MM-5 Pull Systems.

How To (Summary)
Listed below is summary information on how to implement MM-6 Internal Delivery:
6.1 Identify owners, customers and implementation team.
6.2 Develop and implement Awareness Training for owners and customers.
6.3 Educate implementation team on delivery route implementation.
6.4 Develop implementation timing based on How To’s, resources and current environment.
6.5 Define scope of route implementation referring to Site Plan.
6.6 Obtain and validate information from the Plan for Every Part (PFEP).
6.7 Obtain layout of plant.
6.8 Identify customer points-of-use.
6.9 Identify and differentiate, on the layout, the designated storage locations (supermarket/bulk
storage, empty container storage).
6.10 Define Takt Time, line capacity and understand the production rate variability.
6.11 Determine the number of containers per hour/shift and mark on the layout.
6.12 Determine the work content (amount of time).
6.13 Brainstorm route loop candidates based on logical groupings of work content.
6.14 Optimize each route loop.
6.15 Define Withdrawal Pull System requirements to support route frequency.
6.16 Determine empty container return process delivery.
6.17 Finalize routes.
6.18 Determine number of route drivers and supermarket attendants required.
6.19 Define tugger and trailer equipment requirements. Place order.
6.20 Ensure part presentation devices can hold sufficient inventory to support the routes.
6.21 Develop changeover plan with appropriate error proofing and visual controls.
6.21.1 Categorize components.
6.21.2 Determine delivery technique.
6.22 Balance and optimize the work content for production route driver(s)/supermarket
attendant(s).
6.23 Develop Standardized Work for production route driver(s)/supermarket attendant(s).
6.24 Train route drivers and supermarket attendants on their responsibilities and how the system
works using Standardized Work documentation.
6.25 Complete workplace organization changes as required.
6.26 Develop and post plant-wide route layout.
6.27 Update containerization plan.
6.28 Train employees on Route Delivery and Pull System before implementing the loop.
6.29 Review Appendix A: General Considerations for Supermarkets, Pull Systems and Delivery
Routes.
6.30 Implement the System.
6.31 Track the number of pull cards delivered per cycle and route finish times for continuous
improvement.
6.32 Update Plan for Every Part (PFEP).
6.33 Update auditing and maintenance process to include route audits.

135
How To (Detail)
Listed below is detailed information on how to implement MM-6 Internal Delivery:
6.1 Identify owners, customers and

Helpful
implementation team. Hint
• Owners – PC&L and Manufacturing. Utilize current
• Customer – Manufacturing operator. personnel to
develop the system.
• Implementation Team – PC&L, Manufacturing,
IE, Packaging Engineer, Ergonomics and drivers.
6.2 Develop and implement Awareness Training for owners and customers.
6.3 Educate implementation team on delivery route implementation.
6.4 Develop implementation timing based on How To’s, resources and

current environment.
6.5 Define scope of route implementation referring to Site Plan.
6.6 Obtain and validate information from the Plan for Every Part (PFEP).
6.7 Obtain layout of plant.
6.8 Identify customer points-of-use.
6.9 Identify and differentiate, on the layout, the designated storage

locations (supermarket/bulk storage, empty container storage).
Include all empty containers and material (purchased, in-process, and finished goods,
both hand carried and bulk).
(Refer to How To MM-3 Designated Storage.)
6.10 Define Takt Time, line capacity and understand the production rate
variability.

6.11 Determine the number of containers per hour/shift and mark on the
layout.
Base on information from previous How To MM 6-10.
6.12 Determine the work content (amount of time).

Utilizing IE group member, determine the work content (amount of time) for the
following:
• Supermarket activity (picking material and unloading/loading trailer).
• Seven seconds/container for decoupled route.
• Fourteen seconds/container for coupled route.
• Delivery/pick-up of containers (full and empty) at all points-of-use.
• Travel time between all stop points.
− Tugger speed: 333 ft/min.
• Estimate stop times (including container drop-off).
− Time per stop: seven seconds.
− Time to pick-up empty/deliver material (within ten ft.): eight seconds.
• Estimate time for miscellaneous activities (trailer hooking/unhooking, abnormal walk
times, special dunnage handling, etc.).
(Refer to Figure MM-6-C: Sample Route Driver Work Content Analysis.)
6.13 Brainstorm route loop candidates based on logical groupings of work

content
Considering the following criteria:
• Geographic area.
• Production area/value stream.
• Common vs. unique parts.
• Type of material (finished goods, purchased, in-process).
• Bulk vs. hand carried container.
• Kitted vs. unkitted parts.
• Consumption rate.

137
Distance Time Cumulative

Stop Time Drive Time
(feet) (seconds) Time
Drive from market to Stop 1 300 81.82 81.82 81.82
Stop 1: 2019
Get off of tugger x 3.9 85.72
Walk to middle of tugger 10 2.4 88.12
Obtain box x 0.8 88.92
Walk to drop area 5 1.2 90.12
Place box onto table x 1.5 91.62
Retrieve empty box x 0.8 92.42
Walk back to tugger 5 1.2 93.62
Place empty x 1.5 95.12
Repeat for (~2 boxes) x 14 109.12
Walk to stop sign 3 0.72 109.84
Obtain Kanban cards x 0.8 110.64
Get on tugger x 3.9 116.94
Drive to next stop 240 65.45 182.39 35.12 65.45
Stop 2: 2048-Asm. 1
Get off of tugger x 3.9 186.29
Walk to middle of tugger 10 2.4 188.69
Obtain box x 0.8 189.49
Walk to roller rack 5 1.2 190.69
Place box onto roller rack x 1.5 192.19
Retrieve empty box x 0.8 192.99
Place empty x 1.5 195.69
Repeat for (~5 boxes) x 35 230.69
Walk to stop sign 2 0.48 231.17
Obtain Kanban cards x 0.8 231.97
Get on tugger x 3.9 238.27
Drive to next stop 20 5.45 243.72 55.88 5.45
Figure MM-6-C: Sample Route Driver Work Content Analysis

6.14 Optimize each route loop.

Considering the following variables:
• Work content of route drivers.
• Number of points-of-use and containers serviced.
• Capacity of the trailers/Number of trailers required to support route loop.
• Coupled route (where the route driver picks his/her own parts from the supermarket)
vs. decoupled route (where a supermarket attendant picks the parts according to the
pull cards, and the driver only delivers parts). (Refer to Figures MM-6-J, MM-6-K
MM-6-L and MM-6-M in the Attachments section.)
• Route frequency (30,60,90,120 minutes, etc.).
6.15 Define Withdrawal Pull System requirements to support route

frequency.
Refer to How To MM-5 Pull Systems.
6.16 Determine empty container return process delivery.

Refer to MM-7.2 Container Return Process.
6.17 Finalize routes.
6.18 Determine number of route drivers and supermarket attendants

required.
Base number on work content and delivery frequency.
6.19 Define tugger and trailer equipment requirements. Place order.
Helpful • Stand-up tuggers are preferred for ergonomics

Hints and productivity.
• Quad-steer trailers are preferred for tracking
ability (turning radius).
• Consider equipment order lead times.

139
6.20 Ensure part presentation devices can hold sufficient inventory to

support the routes.
6.21 Develop changeover plan with appropriate error proofing and visual
controls.
When developing a changeover plan, the objectives are to:
• Deliver material to the point-of-use to support the operator. The goal is to
display all part
• Support error-proofing techniques to ensure using the right numbers on the
component at the right time. operation and
• Promote small lot delivery of components. replenish what is
required by
• Eliminate need to take partially used containers off of the
using pull.
operation or back to the supermarket.
6.21.1 Categorize components.
There are two different categories of components - common and unique. (Refer to
Figure MM-6-D: Changeover - Common vs. Unique Parts.) For both common
and unique components, the goal is to display all part numbers on the operation
and replenish what is required by using pull.
• Common components are those that are common across all multiple finished
goods part numbers within a product family. Using pull cards, deliver them
directly from the supermarket to the point-of-use to support the operator.
• Unique components are those that are different for the various finished good
part numbers in a product family that are specifically used on one finished
goods part number.
Further categorize unique components into one of the following
subcategories:
− Small AND inexpensive.
− Small AND expensive.
− Bulky (Large) AND expensive.
− Bulky (Large) AND inexpensive.

Part Type
Cover Connectors Springs
xxx1
xxx2
xxx3
xxx4
yyy1
yyy2
yyy3
yyy4
zzz1
zzz2
zzz3
zzz4
Final Assembly PN
FA001
FA002
FA003
FA004
FA005
UNIQUE COMMON
?
UNIQUE COMMON
• Many types • Used on all Final

• Expensive Assemblies
• Large
• Few types
Parts
• Small Presentation
• Inexpensive
Figure MM-6-D: Changeover - Common vs. Unique Parts
Common: The spring (PN zzz2) is a common part. The same part is used in all final assemblies.
Unique: The cover (PN xxx1 - xxx4) is a unique part. A different part is used for each final assembly.
The connectors (PN yyy1 and yyy2) are used in some, but not all final assemblies.

141
6.21.2 Determine delivery technique.

Figure MM-6-E: Changeover – Delivery Techniques provides a guideline for
determining which technique to use. The following points summarize the decision
process.
• Common Parts:
Deliver using replenishment style kanban processes.
• Unique Parts:
Unique parts must be evaluated to determine the best delivery method,
particularly if:
− All parts cannot be displayed on the operation effectively.
− Parts are difficult to distinguish by the operator and there is a chance the
wrong part could be picked and installed.
To determine the appropriate technique, take into Care must be
account the size of the container, the rate of usage taken to error
and the ability to error proof the process to prevent proof the
mixing parts. Care must be taken to error proof the process to
process to prevent picking the wrong but similar prevent picking
part. Using the flowchart in Figure MM-6-E: the wrong but
Changeover – Delivery Techniques we can similar part.
determine the following:
− Bulky and/or expensive parts – sequential delivery to the point-of-use.
− Bulky and inexpensive – focus efforts on reducing the lot size to get to
replenishment.
− Small and inexpensive – replenishment.
Deliver parts using replenishment kanban to the point-of-use if all parts can fit
line-side and the process is error proofed.
If this cannot be done, the parts can be delivered to a location in proximity to
the line (i.e. a changeover rack).
If a changeover rack is used, still order the replenishment of parts via pull
signal when the first piece of the container is used. However, the delivery may
be signaled to the changeover rack rather than to the point-of-use.
If a changeover rack is used to start the process, continue to error proof the
process and get to point-of-use delivery.

Unique Parts Common Parts
Small and Inexpensive Small and Expensive

Bulky and Expensive Replenishment via pull
Bulky and Inexpensive*
Replenishment Sequential Delivery

* If Bulky and Inexpensive, try to reduce
lot size to get to replenishment.
Point-of-Use Stage near the line on a changeover

rack if the parts won't fit line-side or Then continue to improve
need error proofing. Replenishment process by making all parts
should be made via pull signal to the fit line-side or adding error
changeover rack. proofing.
Figure MM-6-E: Changeover – Delivery Techniques

143
6.22 Balance and optimize the work content for production route
driver(s)/supermarket attendant(s).
Refer to Figure MM-6-F: Sample Operator Balance Chart.
Operator Balance Chart

Project: Dept. 2096-Tugger Route Drivers- Day Shift Date: Apr-14-99
OPERATOR DELIVERY
OPERATION NAME STOP TIME DRIVE TIME TOTAL CYCLE
1 Driver #1-Route 1 18.0 10.0 28.0 60.0
2 Driver #2-Route 3, Route 4 14.0 17.0 31.0 60.0
3 Driver #3-Route 2, Route 5 20.0 9.0 29.0 60.0
60.0
MINUTES
MINUTES
OPERATOR BALANCE CHART DRIVE TIME
70.0
STOP TIME
60.0
DELIVERY CYCLE
50.0
40.0
30.0
20.0
10.0
0.0
Driver #1-Route 1 Driver #2-Route 3, Route 4 Driver #3-Route 2, Route 5
Figure MM-6-F: Sample Operator Balance Chart for Route Drivers

Note: The above chart displays low route driver utilization because the delivery routes are in their infancy. The
supermarket and route are being implemented simultaneously and only approximately half of the part
numbers are being delivered on the route at this time. Work content analysis, when all part numbers are
being delivered on routes, results in three purchased part route drivers utilized to Takt Time.

6.23 Develop Standardized Work for production route

driver(s)/supermarket attendant(s).
Include a visual route layout and instructions. (Refer Figures MM-6-G: Sample
Standardized Work for Tugger Route Driver and MM-6-H: Sample Tugger Route
Diagram.)
Route 1: Dept. 2018/2086

2 3
Stop N N Drive
Stop ID Action Parts Time(sec) Time(sec)
Drive from market to Stop 1 42
1 Dept. 2036 WIP pick up all parts for 2018/2086A/2086B 104 104 104 8
drop off empty containers 74 74 74 103
2 Dept. 2087 drop off WIP modules 63 63 63 45
pick up empty containers
3 Dept. 2031 WIP pick up shafts for 2018 84 84 84 72
drop off empty containers
4 2086A--Straight Wire Stop 1 drop off PP 106 106 106 8
5 2086 A WIP pick up modules for 2087 38 38 38 8
At Each Stop:
drop off empty containers
6 2086A--Straight Wire Stop 2 drop off PP 77 77 77 19 -Deliver containers to rack
7 2086A--Northstar drop off PP/WIP 70 70 70 14
8 2086A--Sylgard drop off PP/WIP 21 21 21 3 -Retrieve empty containers
9 2086B--Final Asm. Stop1 drop off PP 49 35
10 2086B--Final Asm. Stop 2 drop off PP/WIP 56 41 -Retrieve Kanban cards
11 2018--Molding Stop #1 drop off WIP, brackets 49 49 49 23
12 2018--Tech Stop #1 drop off PP 35 35 35 6 Route Begins:
13 drop off PP/WIP 42 42 42 27 ON THE HOUR
2018--Molding Stop #2
14 2018--Lean Cell #2 drop off PP 56 56 56 9
15 2018--Lean Cell #3 drop off PP/WIP 56 56 56 8
Drive back to market 80
Total time (sec) 1094 989 989 573

Total time (min) 18 16 16 10
Total Route Time:

1st: 28 min 2nd: 26 min 3rd: 26 min
Figure MM-6-G: Sample Standardized Work for Tugger Route Driver

145
146
5 3
1 2 3 4 5 6 7 8 9 1
0
60
0
6 0
7020
70020
Figure MM-6-H: Sample Tugger Route Diagram

4
1
4 0
0601
106001
0
414
1
4402
4
4020
20
4
10 6
7440 1
989
832 1
04 0
7872 8
1998
41
440
414402
41
0
11 11 11 1
1 1
1 12 12 3
1 3
1 4
1 4
1 5
1 5
1 5
1 5
1 16
1 2 3 4 7 8 9 10 11 12 13 14 15 1
6 1
7 18
4
1095
332 4
106 5
949
1
3 3
1 3
1 14 4
1 15 15
1
0 1
1 12 13 14 15 16
11 1
1
1 2
1
1 1
1 11 1
1 12 1
2 2
1 5
1 16
3 4 5 6 7 8 9 17 18
4
10 3
7640 1
04 5
8887 4
1075
367 4
1090
868 4
1090
645 1
047
792
6 10
475
681 1
2 1
5698
4 5
12 1
6307
Tugger Route Diagram
TUGGER ROUTE #11

2
0

6.24 Train route drivers and supermarket attendants on their

responsibilities and how the system works using Standardized Work
documentation.
6.25 Complete workplace organization changes as required.

• Develop visual controls (part presentation labels, kanban changes, etc.).
• Update/add appropriate addressing.
6.26 Develop and post plant-wide route layout.

Refer to Figure MM-6-I: Sample Tugger Route Summary Visual Control.
6.27 Update containerization plan.

Refer to How To MM-4.1 Containerization.
6.28 Train employees on Route Delivery and Pull System before

implementing the loop.
• Train employees on all shifts.
• Describe the route loop operating procedures.
• Discuss what to do when problems occur.
Helpful
Hints • Train employees on the advantages of the
process and the reasons for implementation.
• Leaders must understand and support the
system. They must be able to teach.
6.29 Review Appendix A: General Considerations for Supermarkets, Pull

Systems and Delivery Routes.
6.30 Implement the System.
6.31 Track the number of pull cards delivered per cycle and route finish
times for continuous improvement.
6.32 Update Plan for Every Part (PFEP).

147
6.33 Update auditing and maintenance process to include route audits.
Tugger Route Summary

Visual Control
20
TUGGER ROUTE #11

TUGGER ROUTE #22
TUGGER ROUTE #33

TUGGER ROUTE #44
TUGGER ROUTE #55
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Figure MM-6-I: Sample Tugger Route Summary Visual Control

• Material Movement Standards (Ideal Material Movement in Plant), Delphi Lean Material
• Material Handling Design Criteria (Appendix B).
Attachments
• Figure MM-6-J: Decoupled vs. Coupled Delivery Routes.
• Figure MM-6-K: Decoupled Delivery Routes.
• Figure MM-6-L: Double Decoupled Delivery Routes.
• Figure MM-6-M: Coupled Delivery Routes.

149
Internal routes can be decoupled or coupled.
Decoupled delivery is where a supermarket attendant picks the parts according to the pull cards,
and a driver delivers the parts. Decoupled delivery is preferred because it forces the use of pull
cards between the route drivers and supermarket attendants to communicate what parts the
operator needs. In addition, decoupled delivery has the following advantages:
• Decoupled routes enable route drivers to deliver more containers per route and run more
routes per day, requiring less inventory at the production operations.
• Decoupled routes enables the supermarket attendant to become responsible for inventory
management.
However, decoupled routes have the following disadvantages
• Decoupled routes typically require more trailers and larger staging areas than coupled
routes.
• Decoupled routes usually require the supermarket attendant to perform a significant
amount of lifting, which could create ergonomics issues. Rotating jobs could address any
ergonomics problems.
Coupled delivery is where the route driver picks his/her own parts from the supermarket.
Coupled routes are preferred when there is insufficient route delivery work to fill drivers’ time.
In these situations, picking and loading their own trailers would balance the drivers’ jobs.
Figure MM-6-J: Decoupled vs. Coupled Delivery Routes

Decoupled (Separate Pick and Deliver System)

Supermarket/CMA
Consuming Operations
ox
ailb
Pull Card
M
Route Driver Pull Card Boxes

Located At Each Operation
1.
Supermarket/CMA Trailers Loaded For

Next Delivery Cycle Consuming Operations
Pull Card
Supermarket
er s
Route Driver
eliv ard
Pull Card Box

dD pc
an ick u
Supermarket/CMA
P
2.
Pull Card Route

Driver Pull Card Boxes
Located At Each Operation
Supermarket/CMA Pull Card Trailers Being Loaded

For Next Delivery Cycle Consuming Operations
k
toc
ks
Supermarket
P ic
Pull Card Box Route Driver

CMA Stock Person
3.
Replenishment Factor = 3+1(running stock)=4

MM-6-K: Decoupled Delivery Routes
• The route driver picks up new pull cards to be replenished while delivering parts for cards collected on the
previous route.
• On his/her return to the supermarket, these new cards are dropped at the supermarket where a supermarket
attendant picks parts for the next delivery.
• The supermarket attendant loads the trailers/dollies in route order according to the pull cards and places the
cards in or on the boxes of parts to be delivered on the next route.
• The driver then picks up the parts prepared by the supermarket attendant based on the cards dropped on the
last trip.
When calculating Withdrawal Pull loops, use three cycles for decoupled deliveries and add one cycle to buffer
route variation. Therefore, with this system the replenishment factor is four.

151
Double Decoupled
Figure MM-6-L: Double Decoupled Delivery Routes
A double decoupled route is where a driver alternates routes every cycle. This technique works best when parts are
in larger containers and an hour’s worth (for example) of material for an entire route will not fit onto the trailers.
The route driver runs the first leg of the route in thirty minutes (for example) and returns to the supermarket and
gives an hour’s worth of cards to the supermarket attendant to pick.
While the driver runs the second leg, the supermarket attendant loads the carts in delivery order based on the pull
cards.
The route driver runs the second leg of the route delivering material set up on the carts by the supermarket attendant
while he was running the first leg and picking cards to give to the supermarket on his return.
Note: With Double Decoupled Delivery the replenishment factor is three.

Coupled (Combined Pick and Deliver System)

Supermarket/CMA
ox
M ailb Route Driver Pull Card Boxes
Pull Card
1.
Located at Each Operation
Supermarket/CMA
Pull Card
ds, Route Driver

p car
u
ic k k,
2. P Stoc Supermarket/CMA
k
Pic iver Consuming Operations
l
De
Pull Card Route
Driver Pull Card Boxes
Located at Each Operation
Replenishment Factor = 2+1(running stock) = 3

MM-6-M: Coupled Delivery Routes
The route driver, rather than a supermarket attendant, picks his/her own material from the supermarket. The route
driver loads carts and delivers material to the operators. The routes in a coupled process are generally much shorter
due to the many tasks the process requires the operator to perform. The use of coupled routes should be limited to
instances where only a small number of containers require delivery or when driver idle time cannot be eliminated.

153

MM-7 Supplier Delivery
Overview
MM-7 SUPPLIER DELIVERY

Supplier Delivery is the process of managing materials received from suppliers and materials
returned to suppliers (containers and dunnage). Supplier Delivery encompasesses the following
concepts: Scheduled Window Receiving, Container Return Process, Supplier Pull and Lean
Logistics.
• Scheduled Window Receiving is a specific dock schedule allocating days and times of
day for delivery of purchased material and pick-up of empty returnable containers.
• Container Return Process is the orderly process of collecting, sorting, staging and
returning damage free reusable containers and dunnage to our suppliers in a timely
manner.
• Supplier Pull is a process that uses pull signals based on consumption to authorize
replenishment of material from suppliers.
• Lean Logistics is a closed loop system of material delivery and container return from
suppliers to customers managed by a Lead Logistics Provider (LLP).
The subsections MM-7.1 Scheduled Window Receiving, MM-7.2 Container Return Process,
MM-7.3 Supplier Pull and MM-7.4 Lean Logistics include objectives, prerequisites, How To
(Detail) and additional information for each of these How To's.
How To (Summary)
Listed below is a summary of the implementation steps for MM-7 Supplier Delivery:
7.1 Scheduled Windows Receiving
7.1.1 Define receiving windows.
7.1.1.1 Develop a cross-functional team (PC&L, Receiving, IE).
7.1.1.2 Develop ship frequency plan by supplier and route based on level
production plan.
7.1.1.3 Determine number of windows based on transportation plan.
7.1.1.4 Develop dock workload based on number of lifts per shipment.
7.1.1.5 Actively involve all shifts of shipping dock personnel in establishing
7.1.1.9 Contact suppliers.
7.1.1.13 Design visual aids with input from dock personnel.
7.1.1.14 Develop guidelines with dock personnel regarding procedures.
7.1.1.15 Implement Workplace Organization in the Receiving Area.
155
Overview
7.1.2 Develop staging and delivery of purchased parts and empty supplier returnable
containers.
7.1.2.1 Develop cross-functional team (PC&L, Shipping, IE).
7.1.2.2 Design the layout of the empty container storage (sorting) area and dock
staging area.
7.1.2.3 Develop a material delivery plan for moving material from the dock
staging area and on to the supermarket.
7.1.2.4 Develop a container return plan for empty containers from the empty
container storage (sorting) and to the dock staging area.
7.1.2.5 Identify the type of equipment required to move material from the dock to
the staging area.
7.1.2.6 Identify the type of equipment to move empty containers from the empty
7.1.2.7 Develop Standardized Work for material handlers and dock personnel.
7.1.2.8 Establish process monitoring for delivery of purchased parts and the
return of empty containers.
7.2 Container Return Process.

7.2.1 Establish a cross-functional team (Mfg., PC&L, IE).
7.2.3 Flow map the current process for removing empty containers from line, to storage,
to staging and shipment to the appropriate supplier.
7.2.4 Use the empty container flow map to identify improvement opportunities.
7.2.5 Use Empty Container Storage to identify storage and sorting location(s) for empty
returnable containers.
7.2.6 Use Internal Delivery Routes to identify how empty containers are moved from the
manufacturing area to the empty container storage area.
7.2.7 Develop a new container return process.
7.2.7.1 Understand inputs.
7.2.7.2 Consider key elements.
7.2.7.3 Define the parameters of the new system.
7.2.8 Train employees on process and procedures.
7.2.9 Implement the new process.
7.2.9.1 Reconfigure container storage area.
7.2.9.2 Train all involved employees to Standardized Work.
7.2.9.3 Develop/Update and display visual controls.
7.2.10 Identify problems using the 5 Alarm Process for Empty Containers.
7.2.11 Implement the problem solving process to address outstanding issues.

Overview
7.3 Supplier Pull

7.3.1 Select parts to be implemented.
7.3.2 Determine information from the Plan For Every Part.
7.3.3 Assess the suppliers’ readiness.
7.3.4 Identify the carrier and related information.
7.3.5 Develop a Supplier Pull loop design.
7.3.6 Develop a signaling method.
7.3.7 Follow implementation steps from MM-5 Pull Systems.
7.3.7.1 Calculate loop size.
7.3.7.2 Determine amount of inventory in transit from supplier to customer and
add to the in-house inventory to determine starting inventory.
7.3.7.3 Adjust inventory to match loop size.
7.3.7.4 When using cards, mark all packs with a pull card.
7.3.7.5 Set aside pull cards equal to the amount of material in transit.
7.3.7.6 Develop and strictly enforce pull system rules and guidelines (including
loop sizes, signal control and operating procedures).
7.3.8 Train management and employees.
7.3.9 Validate the process.
7.4 Lean Logistics

7.4.1 Develop PFEP data/How To MM-1 (Plant/Site).
7.4.2 Develop logistics model (LLP).
7.4.3 Develop logistics plan (LLP).
7.4.4 Determine if plant/site needs requote.
7.4.5 Approve LLP plan (Plant/Site).
7.4.6 Update receiving windows/How To MM-7.1 (Plant/Site).
7.4.7 Update Standardized Work/How To MM-7.1 (Plant/Site).
7.4.8 Update Plan for Every Part (PFEP) Data (Plant/Site).
7.4.9 Communicate plan to suppliers (LLP).
7.4.10 Implement logistics plan.

157
Overview

MM-7.1 Scheduled Window Receiving
MM-7.1 SCHEDULED WINDOW RECEIVEING

Scheduled Window Receiving is a specific dock schedule allocating days and times of day for
delivery of purchased material and pick-up of empty returnable containers.
Objectives
Listed below are the objectives of MM-7.1 Scheduled Window Receiving:
• Schedule all dock activity.
− Schedule Truckload, Milk run, LTL, Railcar and Premium.
− Allow for specific assignments and improved utilization of dock personnel resulting
in more ownership and accountability in the process – basis for dock Standardized
Work.
• Level material flow into the plant and supermarkets.
− Balance multi-day shipments throughout the day.
− Even workload throughout the shift, day and week for every dock.
− Allow for inventory reduction due to more predictable and level receiving schedule.
− Reduce equipment requirements.
− Better control/coordination of drivers.
• Highlight late or early shipments for problem solving.

Listed below are the lean process indicators for MM-7.1 Scheduled Window Receiving:
• The scheduled window receiving board displays the current unload/reload schedule by
door and actual receipt times.
• Countermeasures for non-conformances are being tracked on the dock.
• Minimum driver idle time.
• Standardized Work for drivers is current and visible in the work area.

159
Elements of Effective Scheduled Window Receiving

Listed below are the elements of effective Scheduled Window Receiving:
• Carriers arrive at the designated door at the scheduled window.
• Operating guidelines are established and published. Guidelines describe the carrier, the
supplier and the plant responsibilities.
• Deliveries are scheduled by week, day and hour to level the workload of material
handling personnel and inventory in the plant.
• Resources are allocated for each window.
• Staging areas (where necessary) are:
− Organized in lanes to ensure FIFO flow.
− Visually marked at each dock and used to stage material for the purchased material
supermarket or empty containers from the empty container storage area.
• Visual aids are in place for the dock and office personnel to communicate schedule and
actual performance for each carrier, commodity, dock and time.
• A tracking and feedback system for the supplier and carrier is in place to communicate
performance and resolve problems.
• A process is in place to:
− Ensure that carriers notify the plant promptly if a delivery is delayed.
− Ensure that suppliers notify the plant if they are going to miss a ship window.
− Handle shipments that will not arrive within their scheduled window time.
− Address non-conformance to windows.
− Provide rapid feedback to suppliers and carriers regarding performance.
− Resolve problems.
• Tuggers and trailers are used to move material from docks (where possible).
• Safety requirements are met.
• Deliveries are verified for correct identification and quantity of parts.
• Standardized Work is established for receiving personnel.
Figure MM-7-A: Issues/Advice – Supplier Delivery provides information for successful

implementation.

Issues/Advice
Supplier Delivery
• Manage the docks using visual controls.

• Keep visible records of carrier on-time and late performance.
• Require carriers/drivers to call the plant if they will be delayed.
• Require suppliers to notify the plant if they cannot meet their ship windows.
• To avoid disrupting window schedules, unload/load trailers that are on schedule first.
Require late trailers to wait until first available dock.
• Communicate carrier performance to carriers through Logistics (PC&L).
• Review receiving windows whenever the production plan changes.
• Investigate drop and hook for long distance shipments coming direct to the plant to better
control window times.
• Various related problems can disrupt the window schedule (labor/equipment, bad weather,
customs clearances, etc.).
Figure MM-7-A: Issues/Advice – Supplier Delivery
Prerequisites
Prior to implementing MM-7.1 Scheduled Window Receiving, it is necessary to complete the
following:
• How To IG-1 Site Planning Process.
• How To WO-3 Address System.
• How To MM-1 Plan For Every Part (PFEP).
• How To MM-2.2 Production Leveling.
• How To MM-3 Designated Storage.
• Define containerization and part presentation requirements. (Refer to How To MM-4
Container Right Sizing and Supporting the Operator).
• How To MM-5 Pull Systems.
• Obtain and document existing Receiving Times.
• Obtain and document existing Transportation information (carrier, mode, transit time).

161
How To (Detail)
Listed below is detailed information on how to implement MM-7.1 Scheduled Windows
Receiving:
7.1 Scheduled Windows Receiving

7.1.1 Define receiving windows.
7.1.1.1 Develop a cross-functional team (PC&L, Receiving, IE).
7.1.1.2 Develop ship frequency plan by supplier and route based on level
production plan.
7.1.1.3 Determine number of windows based on transportation plan.
7.1.1.4 Develop dock workload based on number of lifts per shipment.
7.1.1.5 Actively involve all shifts of shipping dock personnel in establishing
• Specialized equipment restrictions.
• Unloading and reloading time factor.
• Local labor agreements.
• Production leveling information.
• Transportation information (carrier, mode, transit time).
• Planned receiving patterns.
• Number of fork truck lifts per truck.
• Priorities, restrictions, constraints and issues identified by dock
personnel.
7.1.1.9 Contact suppliers.
Verify volumes, packaging, targeted shipping windows and window
availability.
Verify transit time and commitment to windows.


• Communicate assignments to dock and material office.
• Adjust banks and ship frequencies as required.
• Update supermarket visual controls as required (ie. min./max.).
• Issue letter to supplier and carrier confirming start date.
7.1.1.13 Design visual aids with input from dock personnel.
Visual aids include the following:
• Scheduled Receiving Window Board.
(Refer to Figure MM-7-B: Scheduled Window Receiving Board.)
− Post scheduled windows daily at start of shift (Carrier - Customer)
using prelabeled magnetic strips.
− The height of each strip represents the total authorized
unload/reload time for that truck.
− Color code carriers for visual management.
− As carriers come in, dock personnel place a visual indicator
(magnetic dot) of on-time status on that carrier:
Green - Carrier on-time and complete shipment loaded within
window.
Red T - (Transportation) Carrier non-conformance to 1/2 hour
shipping window.
Record carrier, date, time, issue/activity and
countermeasure on countermeasure worksheet.
Red S - (Supplier) Supplier quantity non-conformance.
Record date, time, issue/activity (part number and
supplier) and countermeasure on countermeasure
worksheet.
Red D - (Dock) Dock Issue.
Record carrier, date, time, issue/activity and
countermeasure on countermeasure worksheet.
Helpful
Hints • Keep the Scheduled Window Receiving Board simple and easy to maintain.
• Post container return manifests on the Scheduled Window Receiving Board to
instruct dock drivers which containers belong on each return shipment.
• Highlight on the Scheduled Window Receiving Board the length of time
allocated to unload/reload each trailer and audit on a regular basis.

163
SCHEDULED WINDOW RECEIVING

Date: Docks
Time 1 2 3 etc.
6:00 AM Carrier
Carrier 11
(Supplier
(Supplier A)
A)
Carrier
Carrier 44
6:30 AM (Supplier
(Supplier F)
F)
T
T
Carrier
Carrier 22
7:00 AM (Supplier
(Supplier C)
C) SS
T
T
Carrier
Carrier 11
Current
7:30 AM (Supplier
(Supplier B)
B) D
D
Carrier
Carrier 33
Time Carrier
Carrier 33
(8:45 AM) 8:00 AM (Supplier

(Supplier D)
D) (Supplier
(Supplier D)
D)
Carrier
Carrier 44
(Supplier
(Supplier F)
8:30 AM F)
Carrier
Carrier 22
9:00 AM (Supplier
(Supplier D)
D)
Carrier
Carrier 11
9:30 AM (Supplier
(Supplier H)
H)
10:00 AM Carrier
Carrier 22
(Supplier
(Supplier D)
D)
Carrier
Carrier 11 Carrier
Carrier 33
10:30 AM (Supplier
(Supplier G)
G) (Supplier
(Supplier J)
J)
11:00 AM
11:30 AM
etc.
= Met Window
SS = Supplier Issue (Shortage)
KEY: T
D
Figure MM-7-B: Scheduled Window Receiving Board

• Scheduled Receiving Countermeasure Worksheet.

(Refer to Figure MM-7-C: Countermeasure Worksheet.)
− Dock personnel review countermeasure worksheet with supervisor
daily.
− The documented countermeasure worksheet is removed and
forwarded to Logistics weekly.
− Chronic carrier problems generate 5-Phase action.
− Responses are shared by Logistics with dock personnel upon
receipt.
− At minimum, the countermeasure worksheet contains carrier,
date, time, issue/activity, countermeasure and sign-off.
− Some potential reasons for missed window times:
Carrier Responsibility: Supplier Responsibility:
Weather Delay Incorrect Parts and/or
Breakdown Paperwork
Multi-drop off (dock delay) Miscommunication of
Traffic Delay Address and/or Location
Dispatch Delay Dock Space not available
Accident Unloading/Loading Delay
Other (Explain) Other (Explain)
Figure MM-7-C: Countermeasure Worksheet

165
7.1.1.14 Develop guidelines with dock personnel regarding procedures.

• Dock personnel must adhere to established receiving windows.
• Dock personnel must record non-conformances on Monitoring Board.
7.1.1.15 Implement Workplace Organization in the Receiving Area.
• Dock bay identification.
• Staging lane designations.
(Refer to How To WO-3 Address System.)
7.1.2 Develop staging and delivery of purchased parts and empty supplier
returnable containers.
7.1.2.1 Develop cross-functional team (PC&L, Shipping, IE).
7.1.2.2 Design the layout of the Helpful
empty container storage Hint
(sorting) area and dock Eliminating dock staging
staging area. areas is preferred, since
it reduces one handling
Refer to How To MM-3.2 step.
Empty Container Storage.
7.1.2.3 Develop a material delivery plan for moving material from the dock
staging area and on to the supermarket.
7.1.2.4 Develop a container return plan for empty containers from the empty
dock to the staging area.
7.1.2.6 Identify the type of equipment to move empty containers from the
empty container storage (sorting) and to the dock staging area.
7.1.2.7 Develop Standardized Work and train material handlers and dock
personnel.
7.1.2.8 Establish process monitoring for delivery of purchased parts and the
return of empty containers.
Note: When this process is implemented and in full operation, continuous
improvement opportunities can be addressed. The monitoring tools
described will aid the dock, suppliers and carriers in recognizing possible
problems and taking appropriate action to solve them.

167

MM-7.2 Container Return Process
MM-7.2 CONTAINER RETURN PROCESS

Container Return Process is the orderly process of collecting, sorting, staging and returning
damage free reusable containers and dunnage to our suppliers in a timely manner.
Objectives
Listed below are the objectives of MM-7.2 Container Return Process:
• Provide a standardized process for handling of returnable containers and dunnage:

− Ensure the required quantity of containers is returned to the appropriate supplier at
the prescribed time.
− Improve material manpower utilization through standardization.
− Provide a baseline for continuous improvement when implemented with a
disciplined closed loop transportation system.
− Minimize transfer of containers between suppliers due to improper return quantities.
− Prevent a build-up of containers at the wrong location.
− Reduce or eliminate shipping/delivery costs to redirect improperly returned
containers.
− Ensure no production disruptions due to the lack of or the wrong empty containers
at supplier.
• Integrate the process with Containerization:

− Predictable return of containers requires lower container investment since fewer are
required.
• Integrate the process with Designated Storage Area:

− Minimize the area required to accumulate returnable containers prior to shipment.
− Provide opportunity to apply First In/First Out (FIFO) to return of empty containers.
− Requires less floor space for handling/storage of empty containers.

169

Listed below are the lean process indicators for MM-7.2 Container Return Process:
• Number of shortage complaints from suppliers is decreasing.
• Number of containers delivered to the wrong supplier is decreasing.
• Number of container manifests improperly filled out or with zero return quantities is
decreasing.
• Number of containers replaced/added is decreasing.
(Helps identify losses - can lead to analysis of why they are missing.)
• Number of expedited shipments of empty containers is decreasing.
(Measures number of times the process failed. Look for repeatability for problem
solving.)
Figure MM-7-D: Issues/Advice – Container Return Process provides helpful information for
Issues/Advice
• Utilize existing internal delivery routes (How To MM-6 Internal Delivery Routes) and drivers
for collection of empty containers and dunnage in order to:
− Provide more frequent removal from production areas.
− Reduce in-plant traffic flow.
− Utilize return trip of route drivers and equipment.
− Balance ergonomics of the delivery drivers.
• Use proper visual controls to support the process.
• Include empty packaging processing into Plan for Every Part (PFEP).
• Use containers only for shipment or delivery of parts.
Figure MM-7-D: Issues/Advice - Container Return Process

Prerequisites
Prior to implementing MM-7.2 Container Return Process, complete the following:
• How To MM-2.1 Scheduled Window Shipping.
• How To MM-3.1 Supermarket/Bulk Storage.
• How To MM-3.2 Empty Container Storage.
• How To MM-6 Internal Delivery Systems.
• How To MM-7.1 Scheduled Window Receiving.
How To (Detail)
Listed below are the implementation steps with detailed information.
7.2 Container Return Process.
7.2.1 Establish a cross-functional team (Mfg., PC&L, IE).

Refer to Figure MM-7-E: Returnable Container Process. Review the flow chart
to understand how Containerization (MM-4.1), Empty Container Storage (MM-3.2)
7.2.3 Flow map the current process for removing empty containers from line, to
storage, to staging and shipment to the appropriate supplier.
• Current empty storage locations.
• Supermarket locations.
• Material delivery routes.
• Pick-up routes for expendable trash.
171
Containerization
MM-4-1


MM-3-1)
MM-3-2

Sufficient No
Yes

Yes
Available?
Develop Container
No
Return Process
Examine off-site
rd
plan for the plant
Determine container

receiving plant)
MM-7-2

(Bailment)
rd
(3 party)

manifest and people
focused practices
Begin receiving in
returnables
Figure MM-7-E: Returnable Container Process

7.2.4 Use the empty container flow map to identify improvement opportunities.
Listed below are examples of improvement opportunities:
• Broken circles of work.
• Unclear assignments.
• Containers in the system for a long time.
• Imbalance between shipping and receiving quantities.
7.2.5 Use Empty Container Storage to identify storage and sorting location(s) for
empty returnable containers.
Refer to How To MM-3.2 Empty Container Storage.
7.2.6 Use Internal Delivery Routes to identify how empty containers are moved from
the manufacturing area to the empty container storage area.
Refer to How To MM-6 Internal Delivery Routes.
7.2.7 Develop a new container return process.

7.2.7.1 Understand inputs.
• PFEP data.
• Hand carriable containers in production.
• Bulk containers in production.
• Current scheduled receiving windows.
• Operator requirements.
• Supplier’s requirements.
• Existing container return process and improvement opportunities
identified.
7.2.7.2 Consider key elements.
• Focus on eliminating waste (every step in the return process needs to
prepare the container for the supplier’s use).
• Support the operator.
• Use Standardized Work.
• Use designated storage.
• Use visual controls.
• Use Workplace Organization.

173
7.2.7.3 Define the parameters of the new system.

• Develop a process for sorting empty returnable containers.
− Consider supplier order by container type and size for easier
sorting.
− Consider grouping suppliers by return route to simplify dock staging.
• Outbound container return shipping frequency should

match inbound parts receiving frequency. (Pallets and
caps are easier to control when containers are returned
Helpful at the same frequency that they are received.)
Hints
• Containers should be knocked down, accumulated and
returned less frequently than the inbound shipment only
when the supplier is remote and total costs for a one-
for-one return are excessive. These returns must still
be scheduled to a window time and displayed on the
scheduled receiving board.
• Return even expendable dunnage to the supplier for re-
use or disposal.
• Develop process for palletizing, capping, banding and labeling empty

returnable containers for shipment back to the supplier. Use visual
controls in the sorting area to instruct when to cap-off a pallet (i.e.
after two layers).
• Develop Standardized Work for every element of the process.
• Develop container return manifests for each route and post them on the
Dock Window Receiving Board at the corresponding window times.
The container return manifest must accompany the shipment back to
the supplier. The manifest must be signed by each supplier on the
route and filed as a paper trail to resolve any return issues. (For an
example, refer to Figure MM-7-G: Sample Returnable Container
Manifest in the Attachment section.)
Helpful • Utilizing route specific container manifests simplifies

Hints documentation of container return quantities and
problem solving.
• The container return manifest can be used as
Standardized Work instructions for picking and
preparing containers.

7.2.8 Train employees on process and procedures.

• Train supplier and customer employees on the advantages of the process and the
reasons for implementation.
• Train the people using the system on their specific involvement in the system.
• Everyone needs to understand that the empty returnable container is as
important to the supplier as parts are to the customer.
• Instructions need to include proper handling of returnable dunnage.
7.2.9 Implement the new process.

7.2.9.1 Reconfigure container storage area.
Refer to How To MM-3.2 Empty Container Storage.
7.2.9.2 Train all involved employees to Standardized Work.
7.2.9.3 Develop/Update and display visual controls.
• Addressing.
• Overhead sort signs.
• Rack labels.
• Pick lists.
• Storage signs.
• Staging lanes.
Helpful
Hint
To simplify handling, sorting and return, clearly
identify containers and dunnage with a supplier
identification label.
7.2.10 Identify problems using the 5 Alarm Process for Empty Containers.
Implement the 5 Alarm Process for Empty Containers at supplier and customer
locations. (Refer to Figure MM-7-F: 5 Alarm Process for Empty Containers.)
7.2.11 Implement the problem solving process to address outstanding issues.

175
Each alarm is an indicator that requires investigation—the intent of each alarm is to cause action to take place to minimize
disruption. (Note: numbering of these alarms does not indicate a sequence or priority since returnable container movement is a
closed/continuous loop process.)
1. Customer supermarket.
• Parts arrive in incorrect container (e.g. expendable container or incorrect returnable).
When this occurs, the person responsible for loading containers into the supermarket informs supervisor of condition, who
then works with the proper personnel to solve the problem.
− Verify the compatibility of the expendable container within the customer plant material delivery/presentation system.
− Check if suppliers have returnable containers; setup special shipment, if required.
• Empty containers are received in pallet load.
When this occurs the person responsible for loading containers into the supermarket informs supervisor of condition, who
then works with the proper personnel to solve the problem.
− Send empties to sort or marshaling area.
− Check if suppliers have returnable containers; set up special shipment, if required.
2. Customer area where empty containers are palletized (sort, marshaling and/or staging area).
• Area is overflowing with containers.
When this occurs, the person creating the pallet informs supervisor of condition, who then works with the proper personnel
to solve the problem.
− Verify that correct containers are in the area where maximum is exceeded (e.g. possibly for another customer or
supplier).
− Check to see if returns missed last outbound shipment.
− Check if supplier needs special shipment; if so, set up special shipment.
• No empties available to build pallet at the time of shipment.
When this occurs, the person creating the pallet informs supervisor of condition, who then works with the proper personnel
− Look for containers in incorrect storage location (badging makes this possible).
− Check if supplier has an overabundance of containers.
3. Customer dock/lead logistics provider (LLP) (Lean Logistics, MM-7-4).
• No empty container pallets available for reloading into milk run truck, or,
• No empty container pallets available for a specific supplier.
When this occurs, the person unloading truck informs supervisor of condition, who then works with the proper personnel
− Look for containers or pallets out of position.
− Check with marshaling area to see if any pallets are in house.
− Contact supplier to advise that no containers are on the return shipment.
4. Supplier dock
• No containers or another supplier’s containers are in the truck from the customer plant.
When this occurs, the person unloading truck informs supervisor of condition, who then works with the proper personnel
− Call customer or lead logistics supplier to notify that incorrect or no containers were received.
− Notify operations that no additional containers were received in shipment.
− Send incorrect containers back to customer on return route.
5. Supplier designated storage area for returnable containers.
• Below minimum—not enough empties to support parts build schedule.
When this occurs, the person responsible for designated storage area informs supervisor who then works with the proper
personnel to solve the problem.
− Look for containers out of position.
− Inform the customer of shortage.
− Request expedited shipment of returnables.
− Ship parts in expendable of same size and standard pack.
Figure MM-7-F: 5 Alarm Process for Empty Containers

Attachment
• Figure MM-7-G: Sample Returnable Container Manifest

177
SAMPLE RETURNABLE CONTAINER MANIFEST

Delphi "Sample"
Page ___ of ___ Returnable Container Manifest Date _________
Consigned to: B/L :

Month (00) Day (00)
Route:
Window:
Shipper: Delphi Plant Trailer:
Street Address Total Weight:
City, State, Country Booking #:
Seal #:
Delphi Dock Loadback Instructions: Total Totes Reloaded:

1. Unshaded spaces on this manifest indicate lean containers coming from that corresponding supplier.
2. Delphi (Plant) is responsible to load back all bulk containers shown unshaded on the bottom half of the manifest back onto the same trailer.
3. Unshaded boxes in the top half must be filled out for the empty lean totes and pallets on the trailer.
4. If you find any errors on this manifest form, please contact your supervisor.
Delphi-E Michigan Rubber
Fiamm Technologies
(Duns # 781356795)
(Duns # 60178092)
(Duns # 43352038)
(Duns # 62222047)
(Duns # 65870297)
(Duns # 60184496)
Fitzsimmons Mfg.
Delphi-E Cadillac
Michigan Rubber
Dura Automotive
Williamsburg, MI
Grand Traverse
East Jordan, MI
(Duns # 31603)
(Duns # 31996)
(In Load Order)
Big Rapids, MI
Big Rapids, MI
Federal Screw
Cadiallac, MI
Cadiallac, MI
Cadillac, MI
Cadillac, MI
SUPPLIERS
LEAD LOGISTICS PROVIDER

33
SD120805 - Grey
SC151208 - Green
31
SD151208 - Grey
27
SC241508 - Green
43 22
SD241508 - Grey
66
SC241510 - Green
SD241510 - Grey
7
SD321508 - Grey
UP484507 - Pallet 6 DELPHI 2 6 6
Mixed Pallet ( ) Attention Route Managers: Mixed Pallets to always stay on rear of route trailer
3
KD323034 - Black
9
KD484534 - Black
RLOC SSHRT
DELPHI (PLANT)
14
KD323034 - Black
RLOC TB463
29 4
KD484534 - Black
RLOC CB390
CB475 CB440
Shipment
ShipmentPrepared
PreparedBy:
By: Shipment
Shipment Received
Received By:
By:
Figure MM-7-G: Sample Returnable Container Manifest

MM-7.3 Supplier Pull
MM-7.3 SUPPLIER PULL

Supplier Pull is a process that uses pull signals based on consumption to authorize
replenishment of material from suppliers. (Refer to Figure MM-7-H: Supplier Pull.)
Supplier
Figure MM-7-H: Supplier Pull

Supplier Pull is the application of Withdrawal Pull (Pull Systems, MM-5) between our
supermarkets and the supplier. The same concepts and formulas apply with slightly different
interpretation.
Objectives
Listed below are the objectives of MM-7.3 Supplier Pull:
• Link material and information flow between supplier and customer.
• Establish one simple, visual method of controlling and balancing the flow of resources
with the consumption rate throughout the value stream.
• Eliminate the waste of handling, storage, tracking, obsolescence, repair, rework,
facilities, equipment, excess inventory and shortages.
• Allow for lower inventory levels and improved throughput when combined with small
lots and increased delivery frequency and level production.
• Production and PC&L personnel respond when there is variation in the system.
• Provide the basis for continuous improvement by implementing a standardized process.
• Support the application of Standardized Work.
• Provide a communication tool that supports Employee Environment and Involvement.
179

Listed below are the lean process indicators for MM-7.3 Supplier Pull.
• Consistency between parts forecast and pulls is increasing.
• Levelness of pulls from order to order is improving.
• Trailer/sea container cube utilization is increasing.
• % of parts received with the appropriate pull signal on the container is increasing.
• Number of production disruptions due to out-of stock conditions (per day, week,
month) is deceasing.
• Number of parts shortages is decreasing.
• Number/percent of part numbers with overstocked conditions (overflow) is decreasing.
• Total Product Cycle Time (TPc/t) is decreasing.
Figure MM-7-I: Issues/Advice – Supplier Pull provides information for successful

implementation.
Issues/Advice
Supplier Pull
• Supplier pull works best when internal pull has already been effectively implemented on the
plant floor.
• Pull systems will be less effective in a batch production system.
• Pull systems will not be effective without a standard route delivery process.
• Do not use supplier pull for low volume/non-repeatable parts (e.g., past model service) where
replenishment would create excess inventory and potential obsolescence.
• Establish and implement the mechanics of pull before focusing on inventory reduction.
• Use the former parts expediting personnel to maintain the planning process (loop sizes).
• Card pull is a proven method, making it preferred over other methods.
• Pull systems require maintenance of cards (damage, point-of-use location changes, lost cards,
part number changes, etc.).
Figure MM-7-I: Issues/Advice – Supplier Pull

Prerequisites
Prior to implementing MM 7.3 Supplier Pull, complete the following:
• How To MM-2.1 Scheduled Window Shipping.
• How to MM-6 Internal Delivery Routes.
How To (Detail)
Listed below is detailed information on how to implement MM-7.3 Supplier Pull:
7.3 Supplier Pull

7.3.1 Select parts to be implemented.
Begin initial implementation with single-
sourced parts of high volume that are Helpful
received repetitively, preferably daily or more Hint Set up a pilot first,
frequently. The smoother and more stable the to use for training
consumption of the part the easier the the balance of the
external implementation will be. Selection of plant.
parts can be by type, supplier, location,
product line, dollar value, floor space impact,
or manufacturing process impact.
7.3.2 Determine information from the Plan For Every Part.

(Refer to How To MM-1 Plan for Every Part PFEP.)
• Daily volume.
• Ship frequency.
• Standard pack.
7.3.3 Assess the suppliers’ readiness.

181
7.3.4 Identify the carrier and the following related information.

• Ship frequency.
• Shipment transit time.
• Transportation mode.
• Carrier delivery reliability and dependability.
(Refer to How To's MM-7.4 Lean Logistics, MM-7.1 Scheduled Window Receiving,
and MM-1 Plan for Every Part.)
7.3.5 Develop a Supplier Pull loop design.
This is usually a graphic display of the loop including all the techniques that will be
employed during implementation. The methods of gathering and communicating
consumption to suppliers (signaling method) must also be determined.
7.3.6 Develop a signaling method.

There are several types of signaling methods.
• Withdrawal Card Pull (Preferred Method).
Refer to How To MM-5 Internal Pull Systems for a detailed definition.
• EDI Pull - Supermarket Replenishment.
− As the container is pulled from the supermarket for delivery to the
operation, the supplier pull signal is removed from the container and
replaced by an internal plant withdrawal pull signal.
− Each supplier pull signal is bar-coded. Upon withdrawal from the
supermarket, the supplier signal can be read immediately by a bar-code
scanner or placed in a collection box. If placed in a collection box, these
signals are collected at scheduled intervals and are either scanned by a bar-
code reader or are manually input into the plant’s scheduling system.
− All replenishment signals are transmitted via EDI to the suppliers.
− Prior to shipment, the supplier
affixes the numbered pull Helpful
signal (signifying which card Hint
If Withdrawal Card Pull is
of the pull loop) to the not a viable option,
container. Supermarket Replenishment
− Based on supplier lead-time, is the next best method.
the supplier replenishes the
pull signals at the designated
ship window.

• Bill of Material (BOM) Explode.

− Rather than reading pull signals, the BOM Explode creates signals by
calculating usage every time a finished good is produced.
− Once a standard pack’s worth of parts is consumed, a pull signal is created
and sent to the supplier.
Helpful
Hint
CAUTION: BOM Explode DOES NOT
account directly for scrap or loss and relies
on the accuracy of the Bill of Material.
• Physical Card Pull.

− Similar to EDI Supermarket Replenishment except the physical card is
returned to the supplier rather than signaling through EDI.
− The supplier cards are placed in collection boxes in the supermarket.
− At prescribed times throughout the day, the cards are moved from the
collection boxes to the dock.
− The cards are given to the carrier driver at the supplier’s receiving
window(s).
− The carrier returns the cards to the supplier.
− The supplier affixes the cards to containers of the corresponding part
numbers and ships the parts at the prescribed window time.
Helpful
Hint
Physical Card Pull is better
used for suppliers close to the
plant. Short card loops are
easier to manage manually.

183
• Fax Pull.
− Production Control collects the pull signals on a periodic basis at least as
frequent as supplier receipts and prepares a summary that is sent to the
supplier via a fax transmission on a predetermined schedule.
− The cards remain on the dock in a box corresponding to the planned window
receipt day/time for supplier replenishment.
− Upon receipt of the fax, the supplier simply replenishes the part number
quantities on the summary at the prescribed ship window date and time.
− During unloading at the window time, the cards are taken out of the box and
affixed to each container in the shipment. Extra containers without
corresponding cards are considered overshipments and are subject to PR&R.
Leftover cards represent a shortage and action must be taken with the
supplier immediately to determine status.
Helpful
Hint Fax Pull is NOT RECOMMENDED
because the ship authorization is
made outside of the MRP/ERP
System.
7.3.7 Follow implementation steps from MM-5 Pull Systems.

7.3.7.1 Calculate loop size.
To calculate loop size, follow the implementation steps discussed in How
To MM-5 Pull Systems. Consider the following:
• When calculating the loop size, a slightly easier to use (although
fundamentally the same) formula relative to supplier pull is:
Loop Size (Number of pull cards) calculation:

Loop Size = Ave. Daily Demand * (Customer L/T + Supplier L/T + Safety Factor)
Standard Pack Quantity

• Customer and supplier lead times are based on current container return
process. (Refer To MM-7.2 Container Return Process.)
− Customer lead time includes:
• Days of containers in supermarket (full and empty).
• Days of containers staged in empty container storage area.
• Days of containers in-process (full and empty).
− Supplier lead time includes:
• Days of containers at supplier (full and empty).
• Days of containers in transit (full and empty).
• Safety Factor—The amount of inventory required to respond
via premium transportation to a stock-out condition in the
supermarket buffer manufacturing variation between deliveries
(the difference between average daily volume and maximum
during the planning period). Buffer potential weather problems
(i.e. winter banks).
• Calculation Example:
− Average daily demand = 100 units
− Customer lead time = 1 day
− Production lead of the supplier = 1 day
− Safety factor = .2 days
− Standard pack quantity = 5
Loop Size (Number of pull cards) calculation example:

Loop Size = 100 * (1 day + 1 day + .2 day) = 44 signals
5
7.3.7.2 Determine amount of inventory in transit from supplier to customer

and add to the in-house inventory to determine starting inventory.
7.3.7.3 Adjust inventory to match loop size.
7.3.7.4 When using cards, mark all packs with a pull card.
7.3.7.5 Set aside pull cards equal to the amount of material in transit.

185
7.3.7.6 Develop and strictly enforce pull system rules and guidelines
(including loop sizes, signal control and operating procedures).
• Make card adjustments to increase pull loops prior to the volume
increase going into effect and spread evenly over deliveries. To
determine the number of cycles to use to spread the adjustment, add
one to the delivery delay portion of the kanban cycle.
• For example: If adding three cards to a loop with a 1-4-2 cycle, add
one to the delivery delay (2+1) and spread the adjustment over the last
three card returns that will get the material into the plant prior to the
increase going into effect.
• Begin card adjustments to decrease pull loops on the same day that the
volume decrease goes into effect. Spread adjustments over orders
using the same method as above.
• Control material in the system by loop size (and reorder points);
material in the system should not be impacted by operational goals
(hours or pieces).
• Commonize supplier pull signals to avoid confusion.
• The supplier must affix a pull signal to every standard pack.
• Both the supplier and the customer must use signals as intended.
• Establish rules to level pulls to your supplier during erratic production
periods to maintain level flow into your plant.
Helpful
Hint • Level signals across supplier ship windows to
level supplier shipments, logistics
requirements and dock workload.
• Level the part flow by increasing delivery
frequency and reducing lot size.

7.3.8 Train management and employees.

Train management and employees on the advantages of the process the reasons for
implementation.
Helpful Leaders must

Hint understand exactly how
the process works and
each member of the
leadership team needs
to be able to effectively
teach the process
7.3.9 Validate the process.

• Do employees understand?
• Is additional training required?
• Does the selected process need modification?
• Is another solution more appropriate?
• Delphi Delco (PC&L) External Pull Training.
• Quality Network (QN 501) External Pull Systems.

187

MM-7.4 Lean Logistics
MM-7.4 LEAN LOGISTICS

Lean Logistics is a closed-loop system of material delivery and container return from suppliers
to customers managed by a Lead Logistics Provider (LLP). (Refer to Figure MM-7-J: Lean
Logistics.) Lean Logistics is an extension of Internal Delivery Routes (How To MM-6).
Lean Link
Lean LLP Lean

Supplier Delphi Plant
Figure MM-7-J: Lean Logistics
Objectives
Listed below are the objectives of MM-7.4 Lean Logistics:
• Deliver quality products in the most cost effective manner possible.
• Consider total cost.
• Reduce inventory in the total value stream.
• Level the receiving operation.
• Provide material to our manufacturing operations in the required quantity, at the
required place and time.
• Support required shipment frequencies.
• Implement scheduled pick-up and scheduled delivery windows.
• Optimize transit time.
• Simplify paperwork/audit/payment process.

189
Traditional Transportation vs. Lean Logistics

Traditional Transportation - Process Lean Logistics - Process
• Manage by lane/by mode (supplier/plant • Develop Logistics Model.
pairing). (Look at all material/container flow from
between suppliers and plants.)
• Mixture of TL/LTL/Milk-runs.
• Develop Logistics Plan – closed-loop
• Freight mixed with other companies. transportation. (Refer to Figure MM-7-K:
Closed Loop Transportation System.)
Traditional Transportation - Costs Lean Logistics – Costs

• Quote each lane of traffic with qualified • Compare system costs.
carriers.
• Quote system with single manager
• Select Carrier based on price. (Lean Logistics Provider - LLP).
• Re-quote as conditions change (volume, • Work with LLP to reduce costs (Price).
carrier performance, suppliers, etc.).
Traditional Transportation - Drivers Lean Logistics – Drivers

• Drivers haul freight. • Drivers are route managers responsible for
checking material upon pick-up.
Common Process Indicators (For Local Analysis)

Listed below are the lean process indicators for MM-7.4 Lean Logistics:
• Transportation Cost is decreasing.
• Equipment Cube Utilization is increasing.

DM S Route M anager com pares

Supplier signs pick up sheet against
C losed-L oop T ransportation System Supplier unloads
em pty
off em pty return
m anifest
packing slips
contaim ers Y es
Is
Shipm ent D o they Y es
Y es
R oute M anager R oute M anager T ruck m atch?
picks up Start R oute arrives @ O n tim e? Load?
route pick up sheets supplier No
No
No D river verifies # of standard
packs on dock against
pick up sheet
Rte M gr returns to R oute m anager notifies L LP R oute M anager

dom icile rep @ plant calls L LP plant/site
rep for direction
Trailer unloaded & O ther suppliers on route

reloaded w ith notified
em pties
S chedule ship
quantity verified
L LP docum ents
LL P investigates reason and im plem ents corrective
for delay S upplier Y es Rte M gr
action w ith error
quantity docum ents
D ock route board proofing steps
correct? authorization
updated pick up sheets
Freight is loaded into plant/
dock specific trailer
No
Y es
Supplier ship Y es R te M gr
Freight arrives at No quantity refuses
Is freight cross
plant at overshipm ent
docked? m ore?
delivery w indow
Proceed to next stop
Freight arrives at LLP notifies dock and A ffect dock

w indow ? Supplier arranges
destination city schedules new w indow
prepaid prem ium
shipm ent to
cover shortage
U pdate route board No
w ith route delay
No
No
Y es
R te M gr checks in L A ST
ON Supplier loads or
w ith LLP plant/site S TO P ?
Y es releases trailer
T IM E? rep
Figure MM-7-K: Closed Loop Transportation System

191
Elements of Effective Lean Logistics

Listed below are elements of effective implementation of MM-7.4 Lean Logistics:
• The single Lead Logistics Provider (LLP):
− Is resident in the plant as a single point of contact.
− Develops the Logistics Plan.
− Supports Plan for Every Part.
− Communicates Requirements to suppliers.
− Establishes and maintains route board for the PC&L organization.
− Manages and tracks supplier, carrier and plant performance to transportation plan
(shipping, receiving, container return) and addresses non-conformances.
− Verifies, on a part number basis, the number of standard packs for all shipments at
the time of pick-up.
− Maintains historical database.
− Identifies opportunities for further cost reductions.
− Takes an active role in identifying problems, developing and communicating
countermeasures and implementing improvements.
• The number of deliveries to the plant is level by hour-to-hour, day-to-day, week-to-
week.
• All parts are delivered to the plant and/or destination within fifteen minutes of the
scheduled window.
• Capability exists for a minimum daily pick-up and delivery of every commodity.
• Optimum equipment is used for inbound and outbound routes, loaded to maximum
cubing efficiency.
• Live unloading vs. drop and hook will be determined for each delivery.
• Damage-free transportation is required.
• An empty container return process is in place.
• The supplier pays for premium transportation as a result of supplier-responsible delays.

Figure MM-7-L: Issues/Advice-Lean Logistics provides helpful information for successful

implementation.
Issues/Advice
Lean Logistics
• Best after plant has reached a high level of lean implementation.

• Best when multiple supplier and customer locations are involved.
• LLP becomes a critical link to manage the process between the supplier and the customer.
MM-7-L: Issues/Advice-Lean Logistics
Roles of the Lead Logistics Provider (LLP):

• Develop and maintain the Logistics Plan:
− Transportation and carrier selection.
− Route planning.
− Milk runs.
− Flow through pooling operations.
• Communicate requirements to suppliers:
− Manage supplier performance.
− Schedule performance. Highlight undershipments and refuse overshipments.
− Container/standard pack performance.
− Labeling performance.
• Other potential roles:
− Manage synchronous material centers.
− Manage warehousing.
− Manage cross-docking.
− Inventory management.
− Line delivery and point-of-use replenishment.
− Database maintenance (PFEP).
• LLP must continually monitor plan based on PFEP changes (volumes, suppliers, etc.).

193
Prerequisites
Although Lean Logistics can be implemented to support a plant that has not implemented lean
internally, the full true benefits will not be realized. Therefore, it is recommended that the plant
implement DMS before extending lean concepts back to its suppliers through Lean Logistics.
The following Material Movement prerequisites support that goal:
• How To IG-1 Site Plan.
• How To WO-3 Addressing.
• How To MM-1 Plan for Every Part (PFEP).
• How To MM-4 Containerization.
• How To MM-6 Internal Delivery Routes.
• How To MM-7.2 Container Return Process.
How To (Detail)
To implement MM-7.4 Lean Logistics, it is essential to incorporate How To MM-1 Plan for
Every Part and MM-7-1 Scheduled Window Receiving into the process. Figure MM-7-M: Lean
Logistics Flow Chart is a flow chart depicting this process.

Plan for Every Part Lean Logistics

Plant/Site Develops PFEP
Data:
MM-2
MM-1
supplier, location, volumes,

standard packs, weights
LLP Develops
Logistics Model
LLP Develops
Logistics Plan:
Lean Logistics
carriers, transit times,

frequencies, routes, supplier
MM-7-4
windows, load patterns, return

patterns, Price
Plant/Site Yes
requote?
No
Scheduled Window Receiving
Plant/Site approve
LLP Plan
Plant/Site Updates Receiving

MM-7-1
Windows
Plant/Site Updates
Standardized work (PFP)
Plant/Site Updates
Plan for Every Part Data
Lean Logistics
(PFEP)
MM-7-4
LLP communicates plan to

suppliers
Implement Logistics Plan
Figure MM-7-M: Lean Logistics Flow Chart

195
• Quality Network (QN 976-978) Transportation.

Overview
MM-8 OTHER MATERIAL PLANS

Other Material Plans includes the process for the Hazardous Material Plan and Indirect
Material Plan.
• Hazardous Material Plan is required so that material in our plants is handled in the
appropriate manner to ensure the health and safety of our workforce. The hazardous
material control plan should ensure that the material is transported, stored and labeled
in the appropriate manner as designated by the respective divisional procedures.
• Indirect Material Plan is required so that material in our plants is handled in the
appropriate manner to ensure the health and safety of our workforce. The Indirect
Material Acquisition Business Plan should ensure that the material is transported,
stored and labeled in the appropriate manner as designated by the respective divisional
procedures.
The subsections MM-8.1 Hazardous Material Plan and MM-8.2 Indirect Material Plan include
objectives, prerequisites, How To (Detail) and additional information for both of these How To's.
How To (Summary)
Listed below is a summary of the implementation steps for MM-8 Other Material Plans:
8.1 Hazardous Material Plan.

8.1.1 Implement any developed business practices.
8.1.2 Update any QS-9000 documentation as required.
8.1.3 Validate the process application (follow-up).
8.2 Indirect Material Plan.


197
Overview

MM-8 Other Material Plans
MM-8.1 Hazardous Material Plan
MM-8.1 HAZARDOUS MATERIAL PLAN

Hazardous Material Plan is required so that material in our plants is
Proper facilities handled in the appropriate manner to ensure the health and safety of our
and procedures workforce. The hazardous material control plan should ensure that the
should already material is transported, stored and labeled in the appropriate manner as
be in place at designated by the respective divisional procedures. Proper facilities and
every Delphi procedures should already be in place at every Delphi location. Refer to
location. division for examples of best practices.
Objectives
Listed below are the objectives of MM-8.1 Hazardous Material:
• Ensure the health and safety of our workforce.
• Ensure compliance to Delphi internal audit requirements.
• Ensure compliance with QS-9000 requirements.
• Ensure hazardous materials are handled in a expeditious manner.
• Ensure all material is stored in proper locations.

Listed below are the common process indicators for MM-8.1 Hazardous Material Plan.
• No audit comments of the handling of hazardous material.
• No accidents involving hazardous materials.
Figure MM-8-A: Issues/Advice – Hazardous Material Plan provides helpful information

relating to MM-8.1 Hazardous Material Plan.

199
Issues/Advice
Hazardous Material Plan
• Best when leadership supports and demonstrates commitment to the process by providing
necessary material/equipment, people and/or financial resources.
• Store material should be stored in unique locations away from productive material storage areas
until it is disposed.
• Surface and deal with complexity during the planning process to assure a simple execution.
• Dedicate an assigned space for each material.
• Use ergonomic guidelines when designing layout, equipment and processes.
• Leaders must understand exactly how the process works, so that each member of the
leadership team can effectively teach the process.
• Communicate clearly established How To’s or methods of the process.
• Have only the most recently published methodology within a plant.
• Double handling of material is perceived as requiring increase in manpower.
• May require the rearrangement of floor space to allow for a proper storage and disposal.
• Requires that Continuous Improvement be rigorously applied to this area for constant
improvement.
Figure MM-8-A: Issues/Advice – Hazardous Material Plan
Prerequisites
Prior to starting MM-8.1 Hazardous Material Plan, complete the following steps:
• Review the division’s hazardous material procedures.
• Review the plant’s hazardous material procedures.
• Review the plant’s business practices for compliance to divisional procedures.
• Develop any new plant business practices required to comply with divisional
procedures.

How To (Detail)
8.1 Hazardous Material Plan.

• Train employees on the advantages of the process and fully understand the
reasons for implementation.
• Develop and use visual controls to highlight hazardous material storage.
• Remove outdated publications from the plant.

• Divisional Hazardous Material Plans.

201

MM-8.2 Indirect Material Plan
MM-8.2 INDIRECT MATERIAL PLAN

Indirect Material Plan is required so that material in our plants is handled in the appropriate
manner to ensure the health and safety of our workforce. The Indirect Material Acquisition
Business Plan should ensure that the material is transported, stored and labeled in the appropriate
manner as designated by the respective divisional procedures. Proper facilities and procedures
should already be in place at every Delphi location. Refer to division for examples of best
practices. (Synonym: Acquisition Business Plan.)
Objectives
Listed below are the objectives of MM-8.2 Indirect Material Plan:
• Ensure the health and safety of our workforce.
• Ensure compliance to Delphi internal audit requirements.
• Ensure compliance with QS-9000 requirement.
• Ensure Indirect Materials are handled in an expeditious manner.
• Ensure all material is stored in proper locations.

Listed below are the common process indicators for MM-8.2 Inderect Material Plan.
• No audit comments of the handling of Indirect Material.
• No accidents involving Indirect Materials.
Figure MM-8-B: Issues/Advice – Indirect Material Plan provides helpful information relating
to MM-8-1 Hazardous Material Plan.

203
Issues/Advice
Indirect Material Plan
• Best when leadership supports and demonstrates commitment to the process by providing
necessary material/equipment, people and/or financial resources.
• Store material in unique locations away from productive material storage areas.
• Surface and deal with complexity during the planning process to ensure a simple execution.
• Dedicate an assigned space for each material.
• Use ergonomic guidelines when designing layout, equipment and processes.
• Leaders must understand exactly how the process works, so that each member of the
leadership team can effectively teach the process.
• Communicate clearly established How-To’s or methods of the process.
• Have only the most recently published methodology within a plant.
• Double handling of material is perceived as requiring increase in manpower.
• May require the rearrangement of floor space to allow for a proper storage.
• Requires that Continuous Improvement be rigorously applied to this area for constant
improvement.
Figure MM-8-B: Issues/Advice – Indirect Material Plan
Prerequisites
Prior to starting MM-8.2 Indirect Material Plan, complete the following steps:
• Review the division’s indirect material procedures.
• Review the plant’s Indirect Material procedures.
• Review the plant’s business practices for compliance to divisional procedures.
• Develop any new plant business practices required to bring the location into
compliance with divisional procedures.

How To (Detail)
8.2 Indirect Material Plan.

• Train employees on the advantages of the process and the reasons for
implementation.
• Develop and use visual controls to highlight Indirect Material storage.
• Remove outdated publications from the plant.

• Divisional Acquisition Business Plan.

205

Delphi
Manufacturing
System
Material Movement
How To’s
Appendices
Appendices
APPENDICES INDEX
The following MM forms are included in the Appendices:
How To Appendix Title

3.1.17 Appendix A General Considerations for Supermarkets, Pull Systems and
6.29 Delivery Routes
6 Appendix B Material Handling Design Criteria

209
Appendices

Appendix A
APPENDIX A
General Considerations for Supermarkets, Pull Systems and Delivery Routes
• What is the overall layout and flow strategy (refer to site plan)?
Supermarkets
• How is material received into the supermarket?
• How is material put away?
• What prep activities are done in the supermarket and where?
• Detrashing?
• Re-packing?
• Kitting?
• Re-filling of partial totes, pans?
• What rules need to be posted relative to practices in the supermarket?
• Should the system in the supermarket for common parts, fab parts, and unique parts be
the same or different?
• How will you ensure First In/First Out (FIFO) in the supermarket?
• How will you organize material in the supermarket?
• By unique, fab, common parts?
• By kitting?
• Relative to the layout of the supermarket how do you stock and pick? Does the tugger
or handcart need to be able to move throughout the supermarket?
• How will you handle partial pans returned from the lines for re-filling?
• Where will this be done?
• How will you ensure the re-filled tote/pan material is used first on the next run?
Pull Systems
• What is the target inventory by part number?
• How many pulls are required by part number?
• How much space does this require and what types of racks or shelves are required?
• What needs to be communicated to your suppliers about the new system and who needs
to do it? Are standard pack sizes correct for the new system?
• Should we use common lot sizes?

211
Appendix A
• What information needs to be changed or added to the MPS labels?

• What are the addresses for individual components?
• Does the MPS label signal shipment or build at the suppliers?
• Where will you store cards for changeover to parts not being used currently?
Delivery Routes
• How will you respond to delivery routes of less than a one-hour cycle?
• Does the supermarket attendant work on filling an order while the previous order is
delivered (Decoupled vs. coupled)?
• How will you get the material onto the delivery route mechanism (trailer, etc.).
• How will the material be organized on the delivery mechanism so that it can be
sequentially unloaded?
• What practices have to be addressed in order to be responsive to the level scheduling
scenarios?
• How do the parts need to be presented to the operator so they fit in his work envelope
and require no wasted handling?
• How will the filling of orders be handled so they stay in sequence and don’t get mixed?
• What tells the supermarket person what to pick? How much?
• What format and content is required?
• What tells the supermarket person what to re-pack, kit and in what size containers or
standard pack?
• Do we need a kit pull card?
• Do we need a changeover pull card?
• How does the information get to the supermarket?
• How is the filling of the order kept timely?
• Where do the parts get placed once delivered to the line?
• Where does the next full tote get placed while waiting for the current tote to empty?
• What happens to the empty pan or box?
• How do empty pans or partially emptied totes get back to the supermarket?
• Where do the empty pans or partially emptied totes get sent back to a supplier or re-
filled?
• What are the specific delivery addresses for each part number? (line and workplace)
• What do you do with partially emptied containers?

Appendix A
• Where do cards get placed when they are pulled off of the material as it begins to be
consumed?
• Should the type a part dictate what how you handle partially emptied containers?
− Unique
− Kitted
− Fab
− Common
• When you are anticipating a changeover how do you trigger the preparation and
movement of this material from the supermarket?
• Where do you put the new material for the changeover when it arrives at the cell?
• If you end up with a full standard pack of material left from the previous run, what do
you do with it?
• When you make the changeover how does the material get onto the operator
workstation?
• What written operational rules need to be posted at the job site that tell how the system
is to work? Think about changeovers, where cards get stored, how they get used, when
they get placed on the parts, when they come off, etc.
• How do you ensure all parts for the next run are available before you deliver them to
the line? If one is missing what happens?

213
Appendix A

Appendix B
APPENDIX B
Material Handling Design Criteria
The following are some considerations when designing any type of material handling cart or
device to support the manufacturing operation.
The device should:

• Support the operator.
• Present material to the operator oriented for immediate use.
• Utilize ergonomic design criteria.
• Be designed to interface with equipment in the workcell.
• Be designed in conjunction with the workflow and cell design.
• Support First In/First Out usage (FIFO).
• Limit non-cyclic handling of containers by operators.
• Be designed to ultimately eliminate containers.
• Utilize lightweight material (eg. Creform).
• Be easily movable by manual methods.
• Sized to support material delivery routes.
• Visually identify address information.
• Be able to be exchanged without interfering with operator work flow.
• Be flexible to accommodate mixed model production.
• Share a common base design with other similar devices.
• Share interchangeable top racks, trees, etc.
• Utilize fork truck channels and wheels.
• Protect the parts it is designed to hold.
• Have the ability to be transported externally (some uses).
• Be trailer hitch capable (some uses).

215
Appendix B


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Delphi

Ideal Material Movement in a Plant

Publication Date: 01 December 2001

Don Runkle - Champion D. Scott Mitchell

John Holden Ed Northern

Robert Morgan Mark Sabau

Brian P. O’Neill Dave Logozzo

Delphi Confidential. Publication Date: 01/DE/01. i

ii Delphi Confidential. Publication Date: 01/DE/01.

Delphi Confidential. Publication Date: 01/DE/01.

iv Delphi Confidential. Publication Date: 01/DE/01.

MATERIAL MOVEMENT INTRODUCTION

To understand the planning and implementation of Material Movement, as it pertains to other

Quality (Q) Define

Material Movement (MM) Flow Manufacturing

Figure MM-I-A: DMS Interdependent Elements

Delphi Confidential. Publication Date: 01/DE/01.

Future State Material Movement Pyramid

Rolling 6-wk Forecast

Agile/LEAN/Fast to Marketto Market

Dock Finis hed Supermarket

S HEDULE DWINDO WS HI PPIN G

Figure MM-I-B: Material Movement Depiction

4 Delphi Confidential. Publication Date: 01/DE/01.

Stamping Welding Assembly Finished Goods

Figure MM-I-C: Flow Within Processes

Rolling 12-wk Forecast

Stamping Welding Assembly Finished Goods

Figure MM-I-D: Flow Between Processes

Delphi Confidential. Publication Date: 01/DE/01.

To support effective implementation of Material Movement Systems, the importance of

Plan For Every Part

6 Delphi Confidential. Publication Date: 01/DE/01.

Ship to Schedule and Build to Plan

A specific dock schedule

allocating days and times of

day for delivery of empty

finished goods containers and

pick-up of finished goods. 10:00 AM

manufacturing process from the Required Required

schedule (Building to Plan).

A designated area utilized to store material C 1

inventory (purchased, in-process and finished,

both hand carriable and bulk).

• Empty Container Storage Hand carriable Bulk

STORE STORE STORE

A designated area to store empty returnable

containers received from customers and/or Supermarket address

staged for shipment to suppliers. It is the

Rack T64 T64

Delphi Confidential. Publication Date: 01/DE/01.

Container Right Sizing and Supporting the Operator

presentation of a quality part to eliminate

operator. Note: The goal is to have the

The process of grouping parts into sets that

Material to Store Product to User

Production Pull Withdrawal Pull

8 Delphi Confidential. Publication Date: 01/DE/01.

Internal Delivery Systems

goods, both hand carriable and bulk) based on a 7 8 9

supporting pull delivery to a specific number of Internal

Scheduled Window Receiving

A specific dock schedule allocating days and